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SEPTEMBER 2020 WORKING PAPER 2020-19 Emerging electric passenger car markets in Europe: Can Poland lead the way? Authors: Sandra Wappelhorst, Izabela Pniewska Keywords: passenger vehicles, electric vehicle policies, charging infrastructure Introduction Poland is one of the largest passenger car markets in Europe by sales. In 2019, over 555,000 new passenger cars were registered in Poland, ranking sixth among the countries of the European Union and European Free Trade Association (EFTA). 1 Higher numbers were only registered in Germany (3.6 million), the United Kingdom (2.3 million), France (2.2 million), Italy (1.9 million), and Spain (1.3 million). 2 Poland’s passenger car fleet is currently dominated by combustion engine cars. In 2019, 71% of newly registered cars in Poland were running on gasoline, followed by diesel cars with a share of 20%. Hybrid electric vehicles (HEVs) accounted for 7% of the fleet, and liquefied petroleum gas fueled vehicles (LPGs) and compressed natural gas (CNG) vehicles had a combined share of 1.5%. Only a small proportion of new passenger cars were electric vehicles (0.5%), of which 0.3% were battery electric vehicles (BEVs) and 0.2% were plug-in hybrid electric vehicles (PHEVs). 3 In comparison, the average share of new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition to the 555,000 new passenger cars, almost 930,000 used passenger cars were imported and registered in Poland in 2019. In the first half of 2019, 52% of these cars were running on gasoline and 44% on diesel. The remaining 3.5% included 0.2% electric vehicles, 0.1% BEVs and 0.1% PHEVs. 4 In the first six months of 2020, registrations of new 1 The countries of the European Free Trade Association (EFTA) include Iceland, Liechtenstein, Norway, and Switzerland. 2 ACEA – European Automobile Manufacturer’s Association, “New passenger car registrations European Union,” (2020), https://www.acea.be/uploads/press_releases_files/20200116_PRPC_1912_FINAL.pdf 3 ACEA – European Automobile Manufacturer’s Association,” Fuel types of new cars: petrol +11.9%, diesel -3.7%, electric +80.5% in fourth quarter of 2019,” (2020), https://www.acea.be/press-releases/article/fuel-types-of- new-cars-petrol-11.9-diesel-3.7-electric-81.3-in-fourth-quart 4 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry),” First registrations of used PC (imported to Poland) 2019-2020,” (8 June, 2020), https://www.pzpm.org.pl/en/Automotive- market/Used-Passenger-Car-Import-to-Poland/First-Registrations-of-Used-PC-imported-to-Poland2/First- Registrations-of-Used-PC-imported-to-Poland-2019-2020-pdf Acknowledgements: The authors would like to thank Georg Bieker, Dale Hall, Peter Mock, Mike Nicholas and Zifei Yang of the ICCT, Chris Bolesta, Rafał Bajczuk and Jacek Mizak of the Electric Vehicles Promotion Foundation (FPPE) for their critical reviews and helpful comments. © 2020 INTERNATIONAL COUNCIL ON CLEAN TRANSPORTATION www.theicct.org [email protected] twitter @theicct

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Page 1: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

SEPTEMBER 2020

WORKING PAPER 2020-19

Emerging electric passenger car markets in Europe Can Poland lead the way Authors Sandra Wappelhorst Izabela Pniewska

Keywords passenger vehicles electric vehicle policies charging infrastructure

IntroductionPoland is one of the largest passenger car markets in Europe by sales In 2019 over 555000 new passenger cars were registered in Poland ranking sixth among the countries of the European Union and European Free Trade Association (EFTA)1 Higher numbers were only registered in Germany (36 million) the United Kingdom (23 million) France (22 million) Italy (19 million) and Spain (13 million)2

Polandrsquos passenger car fleet is currently dominated by combustion engine cars In 2019 71 of newly registered cars in Poland were running on gasoline followed by diesel cars with a share of 20 Hybrid electric vehicles (HEVs) accounted for 7 of the fleet and liquefied petroleum gas fueled vehicles (LPGs) and compressed natural gas (CNG) vehicles had a combined share of 15 Only a small proportion of new passenger cars were electric vehicles (05) of which 03 were battery electric vehicles (BEVs) and 02 were plug-in hybrid electric vehicles (PHEVs)3 In comparison the average share of new electric passenger cars registered in the EU and EFTA countries was 36 in 2019 In addition to the 555000 new passenger cars almost 930000 used passenger cars were imported and registered in Poland in 2019 In the first half of 2019 52 of these cars were running on gasoline and 44 on diesel The remaining 35 included 02 electric vehicles 01 BEVs and 01 PHEVs4 In the first six months of 2020 registrations of new

1emsp The countries of the European Free Trade Association (EFTA) include Iceland Liechtenstein Norway and Switzerland

2 ACEA ndash European Automobile Manufacturerrsquos Association ldquoNew passenger car registrations European Unionrdquo (2020) httpswwwaceabeuploadspress_releases_files20200116_PRPC_1912_FINALpdf

3 ACEA ndash European Automobile Manufacturerrsquos Associationrdquo Fuel types of new cars petrol +119 diesel -37 electric +805 in fourth quarter of 2019rdquo (2020) httpswwwaceabepress-releasesarticlefuel-types-of-new-cars-petrol-119-diesel-37-electric-813-in-fourth-quart

4 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry)rdquo First registrations of used PC (imported to Poland) 2019-2020rdquo (8 June 2020) httpswwwpzpmorgplenAutomotive-marketUsed-Passenger-Car-Import-to-PolandFirst-Registrations-of-Used-PC-imported-to-Poland2First-Registrations-of-Used-PC-imported-to-Poland-2019-2020-pdf

Acknowledgements The authors would like to thank Georg Bieker Dale Hall Peter Mock Mike Nicholas and Zifei Yang of the ICCT Chris Bolesta Rafał Bajczuk and Jacek Mizak of the Electric Vehicles Promotion Foundation (FPPE) for their critical reviews and helpful comments

copy 2020 INTERNATIONAL COUNCIL ON CLEAN TRANSPORTATION

wwwtheicctorg

communicationstheicctorg

twitter theicct

2 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric passenger cars accounted for 15 and the first registration of used BEVs and PHEVs stood at 025

Air quality in Polish cities is among the poorest in the EU In 2017 Poland ranked second-to-last among the EU-28 countries exceeding the particulate matter (PM25) concentration limit of 20 μgm36 Although the main cause of poor air quality is a large number of small household heating units which burn coal wood or household waste7 motorized vehicles also contribute significantly to pollution The country has one of the oldest vehicle fleets in Europe with an average vehicle age of 14 years in 2018 compared to 11 years in the EU which is partially due to the large number of used vehicles imported8 In 2018 80 of passenger cars on Polandrsquos roads were more than 10 years old

To meet carbon dioxide (CO2) emission targets set by the EU improve local air quality and boost the economy the Polish government is committed to promoting the electrification of its vehicle fleet This briefing provides an overview of policy measures adopted by the national government and local authorities to transition towards electric vehicles The focus is on passenger cars which are responsible for 61 of total CO2 emissions from road transport in Europe9

Electric passenger car market and public charging infrastructureAn increasing number of Polish consumers are showing an interest in electric cars Recent surveys show that between 28 and 45 of citizens and businesses in Poland would consider buying an electric car10

At the same time registrations of new electric passenger cars in Poland have shown a positive trend In 2019 a total of about 2600 new electric cars were registered in Poland a share of 05 In comparison to the 28-EU Member states and the EFTA countries Poland ranked near the bottom in terms of new registration shares Only the Czech Republic Greece Slovakia Lithuania and Estonia recorded a lower uptake as shown in Figure 111 Germany recorded the highest number of new electric passenger car registrations about 108000 in 2019 more than 40 times the number in Poland Norway the leading electric vehicle market with an electric passenger car registration share of 58 in 2019 was 575 percentage points above the share of Poland12

5 Peter Mock Market Monitor ndash European passenger car registrations January-June 2020 (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsMarketMonitor-July-EN-20200805pdf

6 European Environment Agency ldquoAir quality in Europe mdash 2019 reportrdquo EEA Report No 102019 (16 October 2019) httpswwweeaeuropaeupublicationsair-quality-in-europe-2019

7 International Bank for Reconstruction and Development The World Bank ldquoFighting smog energy efficiency and anti-smog in single family buildings in Polandrdquo (May 2018) httpsopenknowledgeworldbankorgbitstreamhandle1098630190127331-REVISED-PolandCuREnergyEfficiencyenpdfsequence=1ampisAllowed=y

8 ACEA ndash European Automobile Manufacturerrsquos Association ldquoACEA Report Vehicles in use in Europe 2019rdquo (2019) httpswwwaceabeuploadspublicationsACEA_Report_Vehicles_in_use-Europe_2019pdf

9 European Parliament ldquoCO2 emissions from cars facts and figures (infographics)rdquo (18 April 2019) httpswwweuroparleuropaeunewsenheadlinessociety20190313STO31218co2-emissions-from-cars-facts-and-figures-infographics

10 Polish Alternative Fuels Association (PSPA) ldquoBarometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_S pdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

11 ACEA ndash European Automobile Manufacturerrsquos Association ldquoNew passenger car registrations European Unionrdquo 12 Dale Hall Sandra Wappelhorst Peter Mock and Nic Lutsey European electric vehicle factbook (ICCT

Washington DC 2020) httpstheicctorgpublicationseuropean-electric-vehicle-factbook-20192020

3 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

0

10

20

30

40

50

60

0

20000

40000

60000

80000

100000

120000

Norway

Iceland

Netherlands

Sweden

Finland

Portugal

Switzerland

Denmark

Ireland

Austria

Belgium

UnitedKingdom

Germany

France

Hungary

Spain

Romania

Slovenia

Italy

Bulgaria

Latvia

Poland

CzechRepublic

Greece

Slovakia

Lithuania

Estonia

2019

ele

ctri

c p

asse

nger

car

reg

istr

atio

n sh

are

2019

ele

ctri

c p

asse

nger

car

reg

istr

atio

ns

Total electric vehicles Electric vehicle share

Figure 1 Total and share of new electric passenger car registrations in select European countries in 2019

Figure 2 shows the share of electric passenger car registrations by subregion (Polish podregiony) using Nomenclature of Territorial Units for Statistics third level (NUTS 3) jurisdictions13 One or more NUTS 3 subregions with at least 250000 inhabitants are defined as metropolitan regions14 Non-metropolitan subregions are typically more rural areas characterized by small and medium-sized towns and municipalities The figure illustrates that generally metropolitan regions with larger cities such as Warsaw and Szczecin experienced the highest electric passenger car uptakes In total 92 of all new electric cars were registered in metropolitan regions compared to 8 in the non-metropolitan subregions This ratio was similar for BEVs and PHEVs The corresponding rate for all new passenger car registrations was 81 in metropolitan regions versus 19 in more rural areas

13 See information on Nomenclature of Territorial Units for Statistics (NUTS) classification and Metropolitan regions ldquoRegions and cities ndash Overviewrdquo Eurostat accessed July 9 2020 httpseceuropaeueurostatwebregions-and-citiesoverview

14 Eurostat Metropolitan regions (nd) httpseceuropaeueurostatwebmetropolitan-regionsbackground

4 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

0lt0202-0505-075075-1gt1

Metropolitanregions

2019 passenger carsElectric vehicle share

WrocławWrocław

ŁoacutedźŁoacutedź

SzczecinSzczecinSzczecin

PoznańPoznańPoznań

KaliskiKaliskiKaliski

WrocławCzęstochowaCzęstochowaCzęstochowa

Łoacutedź

KielceKielceKielce

LublinLublinLublin

BiałystokBiałystokBiałystok

WarsawWarsawWarsaw

KrakoacutewKrakoacutewKrakoacutew

RzeszoacutewRzeszoacutewRzeszoacutew

Bydgoszcz-ToruńBydgoszcz-ToruńBydgoszcz-Toruń

OlsztynOlsztynOlsztyn

KatowiceKatowiceKatowiceTarnoacutewTarnoacutewTarnoacutew

RadomRadomRadom

OpoleOpoleOpole

Bielsko-BiałaBielsko-BiałaBielsko-Biała

GdańskGdańskGdańsk

Figure 2 2019 registration share of electric passenger cars in Poland by NUTS 3 regions Map adapted from Dale Hall Sandra Wappelhorst Peter Mock and Nic Lutsey European electric vehicle factbook (ICCT Washington DC 2020) httpstheicctorgpublicationseuropean-electric-vehicle-factbook-20192020

The majority of new electric passenger cars were registered in the capital city of Warsaw (1300) accounting for the second-highest share in Poland with 10 The city of Szczecin recorded the highest share at 11 but represented a significantly smaller market with only about 100 new electric cars registered throughout 2019 The subregions with the third- and fourth-highest shares were outside the metropolitan regions The subregion of Wrocław adjacent to the city of Wrocław and home of the production plant of the battery cell manufacturer LG Chem accounted for a 09 share and the subregion of Kaliski north east of Wrocław had a share of 06

Poland recorded a positive trend in BEV and PHEV adoption over the past months (Figure 3) By the end of 2019 there were over 8600 electric passenger cars on Polandrsquos roads At the end of June 2020 the number was almost 1230015 Since July 2019 the electric passenger car stock in Poland showed a slow but steady increase This increase slowed to +4 in April 2020 compared to +9 in March likely as the result of the COVID-19 outbreak but recovered slightly in May and June with an increase of +5 each compared to the previous month While PHEVs recorded the highest uptakes in February and March of +11 and +13 respectively the development for BEVs was more balanced with the highest increase of +6 in both January and March 2020 compared to the electric passenger car stock of the previous month However in comparison to larger electric vehicle markets stock figures are still at a very low level In Germany for instance the electric passenger car stock accounted for almost 240000 vehicles by the end of 2019 more than 27-times higher than Poland16 On a per capita basis there were

15 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) ldquoE-mobility indexrdquo (21 July 2020) httpswwwpzpmorgplenAutomotive-marketE-mobility-indexYear-2020E-mobility-index-June-20202

16 Kraftfahrt-Bundesamt Annual balance ndash vehicle stock (2020) httpswwwkbadeDEStatistikFahrzeugeBestandJahresbilanzb_jahresbilanz_inhalthtmlnn=2601598

5 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

02 electric passenger cars per 1000 inhabitants in Poland compared to 3 electric cars per 1000 inhabitants in Germany

0

2000

4000

6000

8000

10000

12000

14000

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Ele

ctri

c p

asse

nger

car

sto

ck

Plug-inhybridelectricvehicles

Batteryelectricvehicles

Figure 3 Development of electric passenger car stock in Poland between July 2019 and June 2020

To create demand for electric vehicles and drive their uptake a certain number of models on the market is crucial17 In 2019 new registrations of passenger cars in Poland included eight different battery electric and 14 plug-in hybrid models only taking into account those models with at least 20 registrations The top three favorable BEV models were the BMW i3 the Nissan Leaf and the Hyundai Kona For PHEVs the Mini Countryman the BMW 530 and the Kia Optima accounted for the largest registration shares among all new electric passenger car registrations In comparison consumers in Germany registered about 30 different BEV and almost 40 PHEV models in 201918

In parallel with the increasing number of electric passenger cars in Poland the public charging infrastructure network has been continuously extended The number of charging stations increased between July 2019 and June 2020 from almost 800 to about 1200 (Figure 4)19 The majority of charging stations (67) were alternating current (AC) compared to 33 being direct current (DC) charging stations The number of AC charging stations experienced the highest increase in August 2019 (+16) while DC charging stations increased by +7 in January 2020 By the end of June 2020 drivers of an electric vehicle had access to over 2200 public charging points an electric vehicle to charging point ratio of 51 more favorable than the ratio of around 101 recommended by the European Commission in 2014 as part of the Alternative Fuels Infrastructure Directive20 By the end of June 2020 64 of the public charging points were Type 1 (up to 74 kW AC) and Type 2 (up to 43 kW AC) 15 CHAdeMO (up to 50 kW ACDC) 14 CCS (up to 50 kW ACDC) and 7 Tesla Supercharger charging points

17 Peter Slowik and Nic Lutsey The continued transition to electric vehicles in US cities (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsTransition_EV_US_Cities_20180724pdf

18 Dale Hall Sandra Wappelhorst Peter Mock and Nic Lutsey European electric vehicle factbook (ICCT Washington DC 2020) httpstheicctorgpublicationseuropean-electric-vehicle-factbook-20192020

19 Polski Związek Przemysłu Motoryzacyjnego ldquoE-mobility indexrdquo20 Official Journal of the European Union Directive 201494EU of the European Parliament and of the Council

of 22 October 2014 on the deployment of alternative fuels infrastructure (22 October 2014) httpseur-lexeuropaeulegal-contentENTXTuri=celex3A32014L0094

6 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

0

200

400

600

800

1000

1200

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Cha

rgin

g s

tati

ons

in o

per

atio

n

DCchargingstations

ACchargingstations

Figure 4 Charging stations in operation in Poland between July 2019 and June 2020

Most of the public charging infrastructure network has been rolled out in major cities By the end of June 2020 there were almost 150 charging stations available in Warsaw followed by Katowice (over 70) Krakoacutew Gdańsk and Wrocław with about 50 charging stations each and Poznań (almost 40)21

Policies driving the electric passenger car market The Polish national government has adopted a variety of policies to drive the electrification of its vehicle fleet At local levels authorities are increasingly using their power to spur electric vehicle adoption yet with different approaches22 The following section gives an overview of these developments and future plans with focus on the passenger car market Despite many actions at local levels we focus on policies adapted in the cities of Krakoacutew Poznań Szczecin Warsaw and Wrocław which recorded the highest electric vehicle uptakes in 2019 The majority or 68 of all new electric passenger cars were registered in these five cities in 2019

Electric vehicle goals (nationallocal)The Polish government has set ambitious targets for the adoption of electric vehicles In 2016 the government announced a goal to have 1 million electric vehicles on its roads by 2025 The ldquoStrategy for Sustainable Transport Development until 2030rdquo from September 2019 altered this plan stating that ldquothe number of electric and hybrid cars could reach 600000 by 2030rdquo23 As outlined in the strategy the goal encompasses BEVs PHEVs FCEVs and hybrid electric vehicles (HEVs) In the short-term the government aims to have 50000 electric vehicles on the roads of the 32 Polish agglomerations by the end

21 Polski Związek Przemysłu Motoryzacyjnego ldquoE-mobility indexrdquo22 Monika Helak ldquoRanking elektromobilnych miast Jak polskie samorządy wprowadzają e-rewolucję

w transporcie (Ranking of electromobility cities How do Polish local governments introduce the e-revolution in transport)rdquo (Polityka Insight November 2019) httpswwwpolitykainsightplen_resourcemultimedium20182683

23 Ministry of Infrastructure ldquoStrategy for Sustainable Transport Development until 2030rdquo (24 September 2019) httpswwwgovplwebinfrastrukturaprojekt-strategii-zrownowazonego-rozwoju-transportu-do-2030-roku2

7 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

of 2020 as identified in the National Framework for Alternative Fuels Infrastructure Development Policy24

At the city level Warsaw has pledged to make a major area of its city zero emission by 2030 The city is part of the global C40 network and is one of 35 cities which signed the Fossil Fuel Free Streets Declaration pledging to reduce the number of polluting vehicles on streets and a transitioning away from vehicles powered by fossil fuels25

Electric vehicle strategic and legal framework Over the past years the Polish government has published and adopted a number of strategic plans and legal frameworks and provided funding to support the uptake of electric vehicles in the country

raquo In March 2017 the government adopted the Electromobility Development Plan which provides a strategy for electric vehicle and charging infrastructure deployment in Poland with the aim to improve air quality and foster economic growth26

raquo In the same month the government adopted the National Framework for Alternative Fuels Infrastructure Development Policy in order to implement EU Directive 201494 on the deployment of alternative fuels infrastructure The framework includes the goal to install 6400 charging points including 400 fast charging points on the Trans-European Transport Network (TEN-T) by 202027

raquo The Law on Electromobility and Alternative Fuels came into force in February 2018 and is the first legislation on electromobility in Poland It lists detailed targets and measures for the uptake of electric vehicles by public institutions including public transportation vehicles and charging infrastructure in most populated cities (over 100000 inhabitants)28

raquo In June 2018 the Law on Biocomponents and Liquid Biofuels was amended and introduced the Low Emission Transport Fund to promote the development of alternative fueled vehicles29 In July 2019 the management of the Fund was entrusted to the National Fund for Environmental Protection and Water Management which took on the task of funding the electrification of Polandrsquos vehicle fleet30

At local levels the government with co-funding from the EU is supporting the efforts of municipalities to grow the electrification of its fleets For example within the national program GEPARD II funding is provided for over 200 local governments to develop electromobility strategies31

24 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

25 C40 Cities Climate Leadership Group Our Commitment to Green and Healthy Streets Fossil Fuel Free Streets Declaration (accessed 29 April 2020) httpswwwc40orgothergreen-and-healthy-streets

26 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo 27 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo28 Kancelaria Sejmu (Chancellery of the Seym) Ustawa z dnia 11 stycznia 2018 r o elektromobilności i paliwach

alternatywnych [Law of 11 January 2018 on electromobility and alternative fuels] (2018) httpprawosejmgovplisapnsfdownloadxspWDU20180000317TD20180317Lpdf

29 Ministry of Climate Low Emission Transport Fund (nd) httpswwwgovplwebklimatfundusz-niskoemisyjnego-transportu

30 Kancelaria Sejmu Dz U 2019 poz 1527 USTAWA z dnia 19 lipca 2019 r o zmianie ustawy o biokomponentach i biopaliwach ciekłych oraz niektoacuterych innych ustaw [Dz Laws of 2019 item 1527 LAW of 19 July 2019 on amending the act on biocomponents and liquid biofuels and some other acts) (July 2019) httpsisapsejmgovplisapnsfdownloadxspWDU20190001527TD20191527Lpdffbclid=IwAR3vV4S81Y_kMoEKtR75PC-yC0eKGY2FRWLiH9rlu6aNSNPf2_na8yAXsbY

31 National Fund for Environmental Protection and Water Management ldquoGEPARD II - low-emission transport Part 2 Strategy for electromobility developmentrdquo (2020) httpnfosigwgovploferta-finansowaniasrodki-krajoweprogramy-priorytetowegepard-ii--transport-niskoemisyjny-czesc-2informacje-o-naborze-

8 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

BEV and PHEV purchase incentives (national)To address the cost gap between electric and conventional cars the Polish government launched three incentive schemes in June 2020 for the purchase of a new electric vehicle not previously registered32 One incentive scheme called ldquoGreen Carrdquo is targeted at private individuals and supports the purchase of a new purely electric (BEV or FCEV) car The aid covers 15 of the purchase price with a maximum amount of PLN 18750 (euro4400) and is capped at a gross purchase price of PLN 125000 (euro29000) Another program ldquoeVANrdquo provides one-time incentives up to PLN 70000 (euro16000) for businesses purchasing or leasing a zero-emission delivery van The third program under the name ldquoKoliberrdquo benefits micro small and medium-sized businesses and targets zero-emission passenger transport The purchase or lease of an electric car is supported with up to PLN 25000 (euro6000) The budget secured by the government for all three programs will allow the co-financing of about 4000 electric cars and vans All programs are aimed at the purchases of new BEVs rather than PHEVs

Electric vehicle registration tax benefit (national)In Poland taxes and fees apply when purchasing or registering a car for the first time This includes one-time payments such as value added tax (VAT) a registration fee and excise duty VAT accounts for 23 of the vehiclersquos price without exemptions for electric cars A registration tax is not imposed when registering a vehicle for the first time Only a registration fee and a fee for an identification card is necessary totalling about euro60 without benefits for purchasers of an electric car When registering a new or used imported passenger car in Poland for the first time an excise tax of 31 of a vehiclersquos net value is imposed if the engine capacity is up to 2000 cm3 and 186 is imposed for cars above 2000 cm3 33 The Law on Electromobility and Alternative Fuels suggests exemptions on excise taxes for electric passenger cars (BEVs PHEVs) FCEVs hybrid vehicles (HEVs) and mild hybrid electric vehicles (MHEVs) The excise tax is waived for zero-emission electric cars (BEVs FCEVs) without a defined timeframe In contrast for PHEVs the excise duty waiver is valid until February 2021 under current plans34 As an example The purchaser of a gasoline Volkswagen Golf with an engine capacity of 1498 cm3 has to pay excise duty of euro500 compared to almost euro600 for a diesel model (1968 cm3) Yet for a vehicle with a higher engine capacity ie above the threshold of 2000 cm3 one-time payments could reach several thousands of euros For a diesel Mercedes X-class sport utility vehicle with an engine displacement of 2298 cm3 the one-time excise duty would be more than euro5500 However for most brands sold in Europe the average engine displacement of new passenger cars has been below 2000 cm3 over the past 20 years35

Electric vehicle usage tax benefit (national)Unlike most countries in Europe the Polish government does not impose periodical ownership taxes for owning a car36 instead choosing to levy taxes on the fuel or electricity used to power the vehicle For Euro-Super 95 and diesel the tax share in

32 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo (25 June 2020) httpwwwnfosigwgovplo-nfosigwaktualnosciart1603nfosigw-dofinansuje-zakup-pojazdow-elektrycznychhtml

33 Kancelaria Sejmu Ustawa z dnia 6 grudnia 2008 r o podatku akcyzowym (Act of 6 December 2008 on excise duty) (8 May 2020) httpisapsejmgovplisapnsfdownloadxspWDU20090030011UD20090011Ljpdf

34 Ministry of State Assets ldquoExemption from excise duty on electric hybrid and hydrogen powered vehicles is not public aidrdquo (14 January 2019) httpswwwgovplwebaktywa-panstwowezwolnienie-z-podatku-akcyzowego-od-pojazdow-elektrycznych-hybrydowych-i-napedzanych-wodorem-nie-jest-pomoca-publiczna1fbclid=IwAR0CC5RiRfpWIUfyeuqlNR8vrg5m1oPNSjulnQLa8EgccyEnD65-kAWjeCg

35 Peter Mock ed European vehicle market statistics 20192020 (ICCT Washington DC 2019) httpstheicctorgpublicationseuropean-vehicle-market-statistics-20192020

36 ACEA ndash European Automobile Manufacturerrsquos Association ldquo2020 ACEA Tax Guiderdquo (2020) httpsaceabeuploadsnews_documentsACEA_Tax_Guide_2020pdf

9 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

the end consumer price was 58 and 54 respectively in July 202037 Taxes on fuels in Poland consist of a 23 VAT an excise tax of PLN 1520 (euro035) per 1000 liters for gasoline fuel and PLN 1151 (euro027) for diesel fuel and a fuel tax The fuel tax rates are PLN 15549 (euro36) for 1000 liters of gasoline and PLN 32334 (euro75) per 1000 liters of diesel38 In 2019 an emission surcharge of PLN 80 (euro19) per 1000 liters fuel (gasoline and diesel) was introduced to finance among others the development of electromobility in Poland39 In terms of electricity costs for charging an electric car households consuming between 5000 and 15000 kWh electricity per year paid about 18 tax on the end consumer price based on average prices for the second half of 201940

Excursus Effects of incentives and tax breaks on vehicle costsFigure 5 shows the effects of taxes tax breaks and one-time purchase incentives on the total cost of ownership for newly purchased cars For comparison we choose the gasoline and diesel versions of the Volkswagen Golf the best-selling passenger car model in the EU41 and the battery electric Nissan Leaf one of the few BEVs available in Poland that is eligible for a bonus The costs are shown over a period of 4 years discounted at 6 for annual cost components and assume private holders similar to previous studies42 In the absence of registration and ownership taxes the cost comparison includes the one-time costs of car purchase (base price VAT excise duty registration fee) and fuel costs differentiated by pre-tax and taxed price Information on fuel consumption is based on the New European Driving Cycle (NEDC) To reflect vehicle real-world consumption for fuel cost calculation we apply an adjustment factor of 137 for gasoline cars and 145 for diesel to the NEDC fuel consumption and energy consumption values43 Fuel prices as of July 6 202044 were used and electricity prices for household consumers with a consumption between 5000 and 15000 kWh were applied based on average prices in Poland in the second half of 2019 and the assumption that private holders charge their electric car at home45 Due to lack of data on average distance travelled in Poland per year we assume 13000 km46

37 European Commission Total taxation share in the end consumer price for Euro-Super 95 and diesel oil (25 May 2020) httpeceuropaeuenergymapsmaps_weekly_oil_bulletinlatest_taxation_oil_pricespdf

38 Minister Infrastruktury ldquoObwieszczenie ministra Infrastruktury z dnia 25 lutego 2020 r zmieniające obwieszczenie w sprawie wysokości stawki opłaty paliwowej na rok 2020 (Notice infrastructure minister of February 25 2020 amending the notice on the amount of the fuel surcharge rate for 2020)rdquo (25 February 2020) httpisapsejmgovplisapnsfdownloadxspWMP20200000211OM20200211pdf

39 Kancelaria Sejmu ldquoUSTAWA z dnia 27 kwietnia 2001 r Prawo ochrony środowiska (ACT of 27 April 2001 Environmental Protection Law)rdquo (27 April 2020) httpisapsejmgovplisapnsfdownloadxspWDU20010620627UD20010627Ljpdf

40 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

41 Peter Mock European vehicle market statistics 20192020 42 Sandra Wappelhorst Peter Mock ed and Zifei Yang Using vehicle taxation policy to lower transport emissions

An overview for passenger cars in Europe (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsEU_vehicle_taxation_Report_20181214_0pdf

43 Uwe Tietge Sonsoles Diacuteaz Peter Mock John German Anup Bandivadekar and Norbert Ligterink From laboratory to road ndash A 2016 update of official and lsquoreal-worldrsquo fuel consumption and CO2 values for passenger cars in Europe (ICCT Washington DC 2016) httpswwwtheicctorgsitesdefaultfilespublicationsICCT_LaboratoryToRoad_2016pdf

44 EC ndash European Commission Weekly Oil Bulletin (2020) httpseceuropaeuenergydata-analysisweekly-oil-bulletin_enredir=1

45 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

46 ACEA ndash European Automobile Manufacturerrsquos Association ldquoACEA Report Vehicles in use Europe 2018rdquo (2018) httpswwwaceabeuploadsstatistic_documentsACEA_Report_Vehicles_in_use-Europe_2018pdf

10 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

euro0

euro5000

euro10000

euro15000

euro20000

euro25000

euro30000

euro35000

4-y

ear

cons

umer

ow

ners

hip

co

sts

Bonus

Fuelelectricity (tax)

Fuelelectricity (pre-tax)

Registration fee

Excise duty

Value added tax

Base price

4-year costs

GasolineVolkswagen Golf

(110 kW 1498 cm3)

DieselVolkswagen Golf

(110 kW 1968 cm3)

BEVNissan Leaf

(110 kW 0 cm3)

euro4100

Figure 5 Comparison of 4-year consumer ownership costs for a gasoline and diesel Volkswagen Golf and BEV Nissan Leaf

Based on these assumptions comparing the conventional Volkswagen Golf models with the electric Nissan Leaf shows that the newly introduced bonus payment on car purchase brings the 4-year cost down by about euro4100 or 15 of the gross purchase price for the Nissan Leaf Yet even with the bonus included the Nissan Leaf still has a euro3000 cost disadvantage over the gasoline Volkswagen Golf Over a holding period of 4 years the cost disadvantage remains yet at a smaller level at over euro1000 The reduction is the result of the euro500 excise tax on gasoline and lower electricity costs of about euro1500 over 4 years compared to 4-year gasoline fuel costs of more than euro3000 In contrast compared to the Volkswagen Golf diesel the Nissan Leaf bears almost identical purchase costs and has a cost advantage of euro2000 over four years again due to the one-time bonus and advantages on excise tax and fuel costs

Electric vehicle company car benefit for employers and employees (national)In the end of 2019 only 32 of electric cars in Poland were owned by private individuals The majority of electric cars (68) were owned by businesses47 Of these leasing companies accounted for 50 carsharing companies for 18 and car dealers for 10 The remaining 22 accounted for manufacturer importers car rental companies and others The Law on Electromobility includes specific tax incentives for electric company cars This involves longer depreciation write-offs compared to conventional cars for companies purchasing a vehicle Under the current policy the maximum passenger car value that can be deducted if a company car is used for business purposes is PLN 150000 (euro35000) for combustion engine and hybrid cars For electric cars the amount is significantly higher at PLN 225000 (euro52000)48 In contrast to electric company cars only used for business purposes there are currently no special provisions for employees privately using an electric company car

Electric vehicle parking benefit The Electromobility Law exempts BEV drivers from parking fees in paid public parking zones The city of Szczecin already introduced preferential parking fees for

47 Krzyczkowska Zuzanna ldquoThere are already 10000 electric cars on Polish roads When will there be a millionrdquo Motopl 14 January 2020 httpsmotoplMotoPL78838925597232na-polskich-drogach-jest-juz-10-tysiecy-samochodow-elektrycznychhtml

48 PwC Doing business in Poland 2019 (2019) httpswwwpwcplplpdfdoing-bussiness-in-poland-2019pdf

11 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

low-emission vehicles in 2014 allowing owners of an electric or hybrid car emitting up to 100 g CO2km to buy a 12-month subscription for parking in the inner-city paid parking zone for PLN 10 (euro200)49 Reduced parking fees in other cities range from PLN 2 (euro050) per hour in the city of Wrocław50 to euro5 for 3-hour parking in Poznań51 Some cities also offer reduced parking fees for PHEVs such as the cities of Krakoacutew52 and Poznań53

Electric vehicle access benefit (national) According to the Electromobility Law local governments must allow BEV drivers access to bus lanes although cities can enact requirements on minimum occupancy to limit this access In addition the law gives local authorities a legal basis to implement clean transport zones (CTZs) allowing access to electric vehicles (BEVs FCEVs) and gas-powered vehicles (CNGs LPGs) only Despite the exclusion of PHEVs by definition municipalities can expand the catalogue of allowed vehicles to include PHEVs According to the law a CTZ can also only be established in city centers of cities with more than 100000 inhabitants A monetary penalty on non-compliant vehicles can be imposed and used for the purpose of marking the CTZs purchasing of zero-emission buses and covering the costs of performing analyses The maximum penalty for non-compliant vehicles cannot exceed PLN 250 PLN (euro050) per hour according to the law54 However the current regulations are too vague to be implemented by the municipalities and the government is therefore working on changing and specifying these regulations55 To date a CTZ has only been introduced in Krakoacutew starting in January 2019 However due to appeals of business owners living within the zone almost all constraints for combustion-engine vehicles in the zone have been abolished56 The city of Poznań performed a public consultation about the development of electromobility in the city between April and May 2020 including proposals for the introduction of a CTZ57

Electric vehicle charging benefit (local)In Poland no city offers a comprehensive network of free charging options for electric vehicles at city owned or managed public parking spaces Yet this policy is a common measure in the early electric vehicle transition stage in cities outside Poland such as

49 City Council of Szczecin ldquoCity Council of Szczecin of 26 May 2014 on the announcement of the consolidated text of the resolution on the establishment of a paid parking zone fees for parking vehicles on the public roads of the City of Szczecin and the way of collecting themrdquo (26 May 2014) httpssppszczecinplplikiuchwala-jtpdf

50 Wroclaw Paid parking zone (23 July 2019) httpswwwwroclawplenpaid-parking-zone 51 Telewizja ldquoThe last day of cheap parking in Poznanrdquo (29 May 2020) httpspoznantvppl48288715ostatni-

dzien-taniego-parkowania-w-poznaniu 52 Dziennik Urzędowy Wojewoacutedztwa Małopolskiego [Official journal province of Malopolska] Uchwala Nr

XXII45619 Rady Miasta Krakowa z dnia 17 lipca 2019 roku w sprawie zmiany uchwały Nr LXXXIX217717 Rady Miasta Krakowa z dnia 22 listopada 2017 r w sprawie ustalenia strefy płatnego parkowania ustalenia opłat za postoacutej pojazdoacutew samochodowych na drogach publicznych w strefie płatnego parkowania wprowadzenia opłaty abonamentowej dla niektoacuterych użytkownikoacutew droacuteg oraz sposobu pobierania tych opłat [Resolution No XXII45619 KRAKOW City Council of 17 July 2019 on the amendment of Resolution No LXXXIX217717 of the Krakow City Council of 22 November 2017 on the establishment of a paid parking zone the establishment of parking fees for motor vehicles on public roads in the paid parking zone the introduction of a subscription fee for certain road users and the method of collecting these fees] (17 July 2019) httpmikrakowplpdfakty-prawneuchwala-nr-xxii45619pdf

53 Telewizja ldquoThe last day of cheap parking in Poznanrdquo54 Law of 11 January 2018 on Electromobility and Alternative Fuels version from May 22 2020 Journal of Laws

httpssiplexplakty-prawnedzu-dziennik-ustawelektromobilnosc-i-paliwa-alternatywne-18683445 55 Łukasz Dubiński ldquoClean transport zones (administrative and legal analysis)rdquo (3 July 2019) httpswwwcirepl

item182937200000strefy-czystego-transportu-analiza-administracyjno-prawnahtml56 Municipal Krakow ABC of clean transport zone in Kazimierz (19 February 2019) httpswwwkrakowplaktual

nosci22658529komunikatabc_strefy_czystego_transportu_na_kazimierzuhtml Municipal Krakow ldquoWhat is left of the Clean Transport Zone in Kazimierzrdquo (6 March 2019) httpswww krakowplaktualnosci22793526komunikatco_zostalo_ze_strefy_czystego_transportu_na_kazimierzuhtml

57 Poznan City Hall ldquoPublic consultation on the draft Strategy for Electromobility Development for the City of Poznań until 2035 - INTERNET CONSULTATIONrdquo (2020) httpswwwpoznanplmimkonsultujemykonsultacje-spoleczne-dotyczace-strategii-rozwoju-elektromobilnosci-dla-miasta-poznania-do-roku-2035-konsultacje-internetowep381173812552515html

12 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Oslo and Paris58 There are selected programs such as in Warsaw where drivers of an electric vehicle can charge their car for free in one out of five assigned car parks if the driver possesses an ECO card59 An increasing number of retailers are also offering free charging at semi-public spaces

Public electric vehicle procurement (nationallocal)The Law on Electromobility also sets fleet and procurement targets for electric vehicles For the central administrationrsquos car fleet which includes government ministries at least 10 of the fleet is required to be comprised of electric vehicles from 2022 and at least 20 electric vehicles are required from 2023 The target for the share of electric vehicles in the fleets of local administrations with more than 50000 inhabitants is 10 by 2022 In addition the law sets targets for other vehicles in addition to passenger cars For example the target for zero-emission buses is 5 by 2021 10 by 2023 and 20 by 2025 in cities with more than 50000 inhabitants

To reach these targets local governments across Poland are beginning to introduce electric vehicles to their municipal fleets In terms of passenger cars the city council of Warsaw opened a tender in late 2019 to lease the first 16 electric cars for its municipal fleet60 In mid-2019 the city council of Wrocław added eight electric cars to its municipal fleet61 Krakoacutew ordered 47 electric cars in the end of 2019 which will be rented over a three year period62 The city of Poznań tested three electric and natural gas vehicles in early 202063 The municipal of Szczecin had just over 10 electric cars in its fleet in mid-201964

Policies driving charging infrastructure deployment Building the necessary charging infrastructure increasing consumerrsquos accessibility and addressing potential barriers is crucial in the transition to electric vehicles This includes public charging as well as the possibility to charge an electric car at home or at workplaces

Charging infrastructure goals (national)The National Framework for Alternative Fuels Infrastructure Development Policy includes a target of 6000 publicly accessible normal charging points and 400 fast charging points by the end of 202065 which is likely to be delayed by one year due to the impacts of the COVID-19 pandemic In comparison the German government has

58 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsEV_city_policies_white_paper_fv_20200224pdf

59 City Warsaw P+R car parks (21 May 2020) httpswarszawa19115pl-parkingi-p-r 60 Editorial Office in Warsaw ldquoTown hall invests in electric cars Officials will drive them for 5 yearsrdquo (12 January

2020) httpswarszawanaszemiastoplratusz-inwestuje-w-samochody-elektryczne-urzednicy-bedaarc1-7501377

61 Janusz Krzeszowski ldquoEco-friendly Nissan will replace the most worn-out combustion cars in the officerdquo (30 May 2019) httpswwwwroclawplsrodowiskoekologiczne-nissany-auta-elektryczne-w-urzedzie-miejskim-wroclawia

62 Wojciech Kwinta ldquoThe first electric cars for Krakow municipal institutions are already hererdquo inzynieriacom 3 November 2019 httpsinzynieriacomenergetykawiadomosci56970pierwsze-samochody-elektryczne-dla-krakowskich-instytucji-miejskich-juz-sa

63 Poznan City Hall ldquoThe city of Poznań is testing electric carsrdquo (3 February 2020) httpswwwpoznanplmiminfonewsmiasto-poznan-testuje-elektryczne-samochody143016html

64 Marcin Gigiel ldquoPresident Krzystek will use a company electric carrdquo (19 April 2019) httpswszczecinieplaktualnosciprezydent_krzystek_bedzie_korzystal_ze_sluzbowego_samochodu_elektrycznegoid-31640html

65 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

13 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

been funding the deployment of publicly accessible charging stations over the past years with the aim to install at least 15000 by the end of 202066

The Law on Electromobility also specifies goals for the roll-out of the alternative-fuels infrastructure in cities including charging stations for electric vehicles Deployment targets depend on the population number of registered cars and the level of motorization According to the law by the end of 2020 there must be 1000 publicly available electric car charging stations available in cities with more than 1 million inhabitants where at least 600000 motor vehicles have been registered and where the motorization level is at least 700 motor vehicles per 1000 inhabitants The number of envisaged public charging stations gradually decreases to 60 in cities with more than 100000 inhabitants at least 60000 vehicles on the roads and at least 400 vehicles per 1000 inhabitants Apart from city targets the legislation also considers the provision of charging infrastructure on main transit routes without specifying target figures

Charging infrastructure promotion (nationallocal)As part of the incentive schemes for BEVs introduced by the Polish government at the end of June 2020 aid is also provided for installing charging infrastructure when purchasing or leasing a new car Businesses purchasing or leasing a zero-emission van under the national eVAN support program can receive 50 of the eligible costs at a maximum aid of PLN 5000 (euro1200) for a charging point up to 22 kW Micro small and medium-sized businesses purchasing or leasing a passenger car as part of the Koliber program can claim 20 of the eligible cost for a charging point up to 22 kW but no more than PLN 25000 (euro5800)67

Outside of national funding for charging points in the business and workplace context there are no specific schemes targeting public and private charging options On a local level there are also no support programs offered by the authorities at current

Electric vehicle ready building codes (nationallocal)According to the Law on Electromobility parking spaces in all newly built public and multi-family buildings shall be equipped with electrical wiring for charging capacities of at least 37 kW This applies to new developments in municipalities with over 100000 inhabitants where more than 60000 vehicles are registered and where the motorization rate is at least 400 cars per 1000 inhabitants Beyond the Law on Electromobility there are currently no implementation provisions which specify the share or number of parking spaces to be equipped A draft ordinance by the Minister of Energy published in May 2019 suggests for public buildings a minimum connection capacity of 20 of the planned number of parking spaces and 37 kW For multi-family buildings the minimum connection capacity is 100 of the planned number of parking spaces and 37 kilowatts kW68 The draft regulation is still in consultation

Beyond the national regulations there are no specific or additional local-level laws

66 Federal Ministry of Transport and Digital Infrastructure ldquoFunding guideline for charging infrastructure for electric vehiclesrdquo (2020) httpswwwbmvideSharedDocsDEArtikelGfoerderrichtlinie-ladeinfrastruktur-elektrofahrzeugehtml

67 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo

68 Minister of Energy Projekt z dnia 25 kwietnia 2019 r Rozporządzenie Ministra Energii z dnia hellip w sprawie sposobu ustalania mocy przyłączeniowej dla wewnętrznych i zewnętrznych stanowisk postojowych związanych z budynkami użyteczności publicznej oraz budynkami mieszkalnymi wielorodzinnymi (Draft of 25 April 2019 Management Minister of Energy from the day on the method of determining the connection capacity for internal and external parking spaces related to public buildings and multi-family residential buildings) (25 April 2019) httpslegislacjarclgovpldocs567123217531259125812591259dokument394845pdf

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 2: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

2 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric passenger cars accounted for 15 and the first registration of used BEVs and PHEVs stood at 025

Air quality in Polish cities is among the poorest in the EU In 2017 Poland ranked second-to-last among the EU-28 countries exceeding the particulate matter (PM25) concentration limit of 20 μgm36 Although the main cause of poor air quality is a large number of small household heating units which burn coal wood or household waste7 motorized vehicles also contribute significantly to pollution The country has one of the oldest vehicle fleets in Europe with an average vehicle age of 14 years in 2018 compared to 11 years in the EU which is partially due to the large number of used vehicles imported8 In 2018 80 of passenger cars on Polandrsquos roads were more than 10 years old

To meet carbon dioxide (CO2) emission targets set by the EU improve local air quality and boost the economy the Polish government is committed to promoting the electrification of its vehicle fleet This briefing provides an overview of policy measures adopted by the national government and local authorities to transition towards electric vehicles The focus is on passenger cars which are responsible for 61 of total CO2 emissions from road transport in Europe9

Electric passenger car market and public charging infrastructureAn increasing number of Polish consumers are showing an interest in electric cars Recent surveys show that between 28 and 45 of citizens and businesses in Poland would consider buying an electric car10

At the same time registrations of new electric passenger cars in Poland have shown a positive trend In 2019 a total of about 2600 new electric cars were registered in Poland a share of 05 In comparison to the 28-EU Member states and the EFTA countries Poland ranked near the bottom in terms of new registration shares Only the Czech Republic Greece Slovakia Lithuania and Estonia recorded a lower uptake as shown in Figure 111 Germany recorded the highest number of new electric passenger car registrations about 108000 in 2019 more than 40 times the number in Poland Norway the leading electric vehicle market with an electric passenger car registration share of 58 in 2019 was 575 percentage points above the share of Poland12

5 Peter Mock Market Monitor ndash European passenger car registrations January-June 2020 (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsMarketMonitor-July-EN-20200805pdf

6 European Environment Agency ldquoAir quality in Europe mdash 2019 reportrdquo EEA Report No 102019 (16 October 2019) httpswwweeaeuropaeupublicationsair-quality-in-europe-2019

7 International Bank for Reconstruction and Development The World Bank ldquoFighting smog energy efficiency and anti-smog in single family buildings in Polandrdquo (May 2018) httpsopenknowledgeworldbankorgbitstreamhandle1098630190127331-REVISED-PolandCuREnergyEfficiencyenpdfsequence=1ampisAllowed=y

8 ACEA ndash European Automobile Manufacturerrsquos Association ldquoACEA Report Vehicles in use in Europe 2019rdquo (2019) httpswwwaceabeuploadspublicationsACEA_Report_Vehicles_in_use-Europe_2019pdf

9 European Parliament ldquoCO2 emissions from cars facts and figures (infographics)rdquo (18 April 2019) httpswwweuroparleuropaeunewsenheadlinessociety20190313STO31218co2-emissions-from-cars-facts-and-figures-infographics

10 Polish Alternative Fuels Association (PSPA) ldquoBarometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_S pdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

11 ACEA ndash European Automobile Manufacturerrsquos Association ldquoNew passenger car registrations European Unionrdquo 12 Dale Hall Sandra Wappelhorst Peter Mock and Nic Lutsey European electric vehicle factbook (ICCT

Washington DC 2020) httpstheicctorgpublicationseuropean-electric-vehicle-factbook-20192020

3 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

0

10

20

30

40

50

60

0

20000

40000

60000

80000

100000

120000

Norway

Iceland

Netherlands

Sweden

Finland

Portugal

Switzerland

Denmark

Ireland

Austria

Belgium

UnitedKingdom

Germany

France

Hungary

Spain

Romania

Slovenia

Italy

Bulgaria

Latvia

Poland

CzechRepublic

Greece

Slovakia

Lithuania

Estonia

2019

ele

ctri

c p

asse

nger

car

reg

istr

atio

n sh

are

2019

ele

ctri

c p

asse

nger

car

reg

istr

atio

ns

Total electric vehicles Electric vehicle share

Figure 1 Total and share of new electric passenger car registrations in select European countries in 2019

Figure 2 shows the share of electric passenger car registrations by subregion (Polish podregiony) using Nomenclature of Territorial Units for Statistics third level (NUTS 3) jurisdictions13 One or more NUTS 3 subregions with at least 250000 inhabitants are defined as metropolitan regions14 Non-metropolitan subregions are typically more rural areas characterized by small and medium-sized towns and municipalities The figure illustrates that generally metropolitan regions with larger cities such as Warsaw and Szczecin experienced the highest electric passenger car uptakes In total 92 of all new electric cars were registered in metropolitan regions compared to 8 in the non-metropolitan subregions This ratio was similar for BEVs and PHEVs The corresponding rate for all new passenger car registrations was 81 in metropolitan regions versus 19 in more rural areas

13 See information on Nomenclature of Territorial Units for Statistics (NUTS) classification and Metropolitan regions ldquoRegions and cities ndash Overviewrdquo Eurostat accessed July 9 2020 httpseceuropaeueurostatwebregions-and-citiesoverview

14 Eurostat Metropolitan regions (nd) httpseceuropaeueurostatwebmetropolitan-regionsbackground

4 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

0lt0202-0505-075075-1gt1

Metropolitanregions

2019 passenger carsElectric vehicle share

WrocławWrocław

ŁoacutedźŁoacutedź

SzczecinSzczecinSzczecin

PoznańPoznańPoznań

KaliskiKaliskiKaliski

WrocławCzęstochowaCzęstochowaCzęstochowa

Łoacutedź

KielceKielceKielce

LublinLublinLublin

BiałystokBiałystokBiałystok

WarsawWarsawWarsaw

KrakoacutewKrakoacutewKrakoacutew

RzeszoacutewRzeszoacutewRzeszoacutew

Bydgoszcz-ToruńBydgoszcz-ToruńBydgoszcz-Toruń

OlsztynOlsztynOlsztyn

KatowiceKatowiceKatowiceTarnoacutewTarnoacutewTarnoacutew

RadomRadomRadom

OpoleOpoleOpole

Bielsko-BiałaBielsko-BiałaBielsko-Biała

GdańskGdańskGdańsk

Figure 2 2019 registration share of electric passenger cars in Poland by NUTS 3 regions Map adapted from Dale Hall Sandra Wappelhorst Peter Mock and Nic Lutsey European electric vehicle factbook (ICCT Washington DC 2020) httpstheicctorgpublicationseuropean-electric-vehicle-factbook-20192020

The majority of new electric passenger cars were registered in the capital city of Warsaw (1300) accounting for the second-highest share in Poland with 10 The city of Szczecin recorded the highest share at 11 but represented a significantly smaller market with only about 100 new electric cars registered throughout 2019 The subregions with the third- and fourth-highest shares were outside the metropolitan regions The subregion of Wrocław adjacent to the city of Wrocław and home of the production plant of the battery cell manufacturer LG Chem accounted for a 09 share and the subregion of Kaliski north east of Wrocław had a share of 06

Poland recorded a positive trend in BEV and PHEV adoption over the past months (Figure 3) By the end of 2019 there were over 8600 electric passenger cars on Polandrsquos roads At the end of June 2020 the number was almost 1230015 Since July 2019 the electric passenger car stock in Poland showed a slow but steady increase This increase slowed to +4 in April 2020 compared to +9 in March likely as the result of the COVID-19 outbreak but recovered slightly in May and June with an increase of +5 each compared to the previous month While PHEVs recorded the highest uptakes in February and March of +11 and +13 respectively the development for BEVs was more balanced with the highest increase of +6 in both January and March 2020 compared to the electric passenger car stock of the previous month However in comparison to larger electric vehicle markets stock figures are still at a very low level In Germany for instance the electric passenger car stock accounted for almost 240000 vehicles by the end of 2019 more than 27-times higher than Poland16 On a per capita basis there were

15 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) ldquoE-mobility indexrdquo (21 July 2020) httpswwwpzpmorgplenAutomotive-marketE-mobility-indexYear-2020E-mobility-index-June-20202

16 Kraftfahrt-Bundesamt Annual balance ndash vehicle stock (2020) httpswwwkbadeDEStatistikFahrzeugeBestandJahresbilanzb_jahresbilanz_inhalthtmlnn=2601598

5 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

02 electric passenger cars per 1000 inhabitants in Poland compared to 3 electric cars per 1000 inhabitants in Germany

0

2000

4000

6000

8000

10000

12000

14000

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Ele

ctri

c p

asse

nger

car

sto

ck

Plug-inhybridelectricvehicles

Batteryelectricvehicles

Figure 3 Development of electric passenger car stock in Poland between July 2019 and June 2020

To create demand for electric vehicles and drive their uptake a certain number of models on the market is crucial17 In 2019 new registrations of passenger cars in Poland included eight different battery electric and 14 plug-in hybrid models only taking into account those models with at least 20 registrations The top three favorable BEV models were the BMW i3 the Nissan Leaf and the Hyundai Kona For PHEVs the Mini Countryman the BMW 530 and the Kia Optima accounted for the largest registration shares among all new electric passenger car registrations In comparison consumers in Germany registered about 30 different BEV and almost 40 PHEV models in 201918

In parallel with the increasing number of electric passenger cars in Poland the public charging infrastructure network has been continuously extended The number of charging stations increased between July 2019 and June 2020 from almost 800 to about 1200 (Figure 4)19 The majority of charging stations (67) were alternating current (AC) compared to 33 being direct current (DC) charging stations The number of AC charging stations experienced the highest increase in August 2019 (+16) while DC charging stations increased by +7 in January 2020 By the end of June 2020 drivers of an electric vehicle had access to over 2200 public charging points an electric vehicle to charging point ratio of 51 more favorable than the ratio of around 101 recommended by the European Commission in 2014 as part of the Alternative Fuels Infrastructure Directive20 By the end of June 2020 64 of the public charging points were Type 1 (up to 74 kW AC) and Type 2 (up to 43 kW AC) 15 CHAdeMO (up to 50 kW ACDC) 14 CCS (up to 50 kW ACDC) and 7 Tesla Supercharger charging points

17 Peter Slowik and Nic Lutsey The continued transition to electric vehicles in US cities (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsTransition_EV_US_Cities_20180724pdf

18 Dale Hall Sandra Wappelhorst Peter Mock and Nic Lutsey European electric vehicle factbook (ICCT Washington DC 2020) httpstheicctorgpublicationseuropean-electric-vehicle-factbook-20192020

19 Polski Związek Przemysłu Motoryzacyjnego ldquoE-mobility indexrdquo20 Official Journal of the European Union Directive 201494EU of the European Parliament and of the Council

of 22 October 2014 on the deployment of alternative fuels infrastructure (22 October 2014) httpseur-lexeuropaeulegal-contentENTXTuri=celex3A32014L0094

6 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

0

200

400

600

800

1000

1200

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Cha

rgin

g s

tati

ons

in o

per

atio

n

DCchargingstations

ACchargingstations

Figure 4 Charging stations in operation in Poland between July 2019 and June 2020

Most of the public charging infrastructure network has been rolled out in major cities By the end of June 2020 there were almost 150 charging stations available in Warsaw followed by Katowice (over 70) Krakoacutew Gdańsk and Wrocław with about 50 charging stations each and Poznań (almost 40)21

Policies driving the electric passenger car market The Polish national government has adopted a variety of policies to drive the electrification of its vehicle fleet At local levels authorities are increasingly using their power to spur electric vehicle adoption yet with different approaches22 The following section gives an overview of these developments and future plans with focus on the passenger car market Despite many actions at local levels we focus on policies adapted in the cities of Krakoacutew Poznań Szczecin Warsaw and Wrocław which recorded the highest electric vehicle uptakes in 2019 The majority or 68 of all new electric passenger cars were registered in these five cities in 2019

Electric vehicle goals (nationallocal)The Polish government has set ambitious targets for the adoption of electric vehicles In 2016 the government announced a goal to have 1 million electric vehicles on its roads by 2025 The ldquoStrategy for Sustainable Transport Development until 2030rdquo from September 2019 altered this plan stating that ldquothe number of electric and hybrid cars could reach 600000 by 2030rdquo23 As outlined in the strategy the goal encompasses BEVs PHEVs FCEVs and hybrid electric vehicles (HEVs) In the short-term the government aims to have 50000 electric vehicles on the roads of the 32 Polish agglomerations by the end

21 Polski Związek Przemysłu Motoryzacyjnego ldquoE-mobility indexrdquo22 Monika Helak ldquoRanking elektromobilnych miast Jak polskie samorządy wprowadzają e-rewolucję

w transporcie (Ranking of electromobility cities How do Polish local governments introduce the e-revolution in transport)rdquo (Polityka Insight November 2019) httpswwwpolitykainsightplen_resourcemultimedium20182683

23 Ministry of Infrastructure ldquoStrategy for Sustainable Transport Development until 2030rdquo (24 September 2019) httpswwwgovplwebinfrastrukturaprojekt-strategii-zrownowazonego-rozwoju-transportu-do-2030-roku2

7 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

of 2020 as identified in the National Framework for Alternative Fuels Infrastructure Development Policy24

At the city level Warsaw has pledged to make a major area of its city zero emission by 2030 The city is part of the global C40 network and is one of 35 cities which signed the Fossil Fuel Free Streets Declaration pledging to reduce the number of polluting vehicles on streets and a transitioning away from vehicles powered by fossil fuels25

Electric vehicle strategic and legal framework Over the past years the Polish government has published and adopted a number of strategic plans and legal frameworks and provided funding to support the uptake of electric vehicles in the country

raquo In March 2017 the government adopted the Electromobility Development Plan which provides a strategy for electric vehicle and charging infrastructure deployment in Poland with the aim to improve air quality and foster economic growth26

raquo In the same month the government adopted the National Framework for Alternative Fuels Infrastructure Development Policy in order to implement EU Directive 201494 on the deployment of alternative fuels infrastructure The framework includes the goal to install 6400 charging points including 400 fast charging points on the Trans-European Transport Network (TEN-T) by 202027

raquo The Law on Electromobility and Alternative Fuels came into force in February 2018 and is the first legislation on electromobility in Poland It lists detailed targets and measures for the uptake of electric vehicles by public institutions including public transportation vehicles and charging infrastructure in most populated cities (over 100000 inhabitants)28

raquo In June 2018 the Law on Biocomponents and Liquid Biofuels was amended and introduced the Low Emission Transport Fund to promote the development of alternative fueled vehicles29 In July 2019 the management of the Fund was entrusted to the National Fund for Environmental Protection and Water Management which took on the task of funding the electrification of Polandrsquos vehicle fleet30

At local levels the government with co-funding from the EU is supporting the efforts of municipalities to grow the electrification of its fleets For example within the national program GEPARD II funding is provided for over 200 local governments to develop electromobility strategies31

24 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

25 C40 Cities Climate Leadership Group Our Commitment to Green and Healthy Streets Fossil Fuel Free Streets Declaration (accessed 29 April 2020) httpswwwc40orgothergreen-and-healthy-streets

26 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo 27 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo28 Kancelaria Sejmu (Chancellery of the Seym) Ustawa z dnia 11 stycznia 2018 r o elektromobilności i paliwach

alternatywnych [Law of 11 January 2018 on electromobility and alternative fuels] (2018) httpprawosejmgovplisapnsfdownloadxspWDU20180000317TD20180317Lpdf

29 Ministry of Climate Low Emission Transport Fund (nd) httpswwwgovplwebklimatfundusz-niskoemisyjnego-transportu

30 Kancelaria Sejmu Dz U 2019 poz 1527 USTAWA z dnia 19 lipca 2019 r o zmianie ustawy o biokomponentach i biopaliwach ciekłych oraz niektoacuterych innych ustaw [Dz Laws of 2019 item 1527 LAW of 19 July 2019 on amending the act on biocomponents and liquid biofuels and some other acts) (July 2019) httpsisapsejmgovplisapnsfdownloadxspWDU20190001527TD20191527Lpdffbclid=IwAR3vV4S81Y_kMoEKtR75PC-yC0eKGY2FRWLiH9rlu6aNSNPf2_na8yAXsbY

31 National Fund for Environmental Protection and Water Management ldquoGEPARD II - low-emission transport Part 2 Strategy for electromobility developmentrdquo (2020) httpnfosigwgovploferta-finansowaniasrodki-krajoweprogramy-priorytetowegepard-ii--transport-niskoemisyjny-czesc-2informacje-o-naborze-

8 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

BEV and PHEV purchase incentives (national)To address the cost gap between electric and conventional cars the Polish government launched three incentive schemes in June 2020 for the purchase of a new electric vehicle not previously registered32 One incentive scheme called ldquoGreen Carrdquo is targeted at private individuals and supports the purchase of a new purely electric (BEV or FCEV) car The aid covers 15 of the purchase price with a maximum amount of PLN 18750 (euro4400) and is capped at a gross purchase price of PLN 125000 (euro29000) Another program ldquoeVANrdquo provides one-time incentives up to PLN 70000 (euro16000) for businesses purchasing or leasing a zero-emission delivery van The third program under the name ldquoKoliberrdquo benefits micro small and medium-sized businesses and targets zero-emission passenger transport The purchase or lease of an electric car is supported with up to PLN 25000 (euro6000) The budget secured by the government for all three programs will allow the co-financing of about 4000 electric cars and vans All programs are aimed at the purchases of new BEVs rather than PHEVs

Electric vehicle registration tax benefit (national)In Poland taxes and fees apply when purchasing or registering a car for the first time This includes one-time payments such as value added tax (VAT) a registration fee and excise duty VAT accounts for 23 of the vehiclersquos price without exemptions for electric cars A registration tax is not imposed when registering a vehicle for the first time Only a registration fee and a fee for an identification card is necessary totalling about euro60 without benefits for purchasers of an electric car When registering a new or used imported passenger car in Poland for the first time an excise tax of 31 of a vehiclersquos net value is imposed if the engine capacity is up to 2000 cm3 and 186 is imposed for cars above 2000 cm3 33 The Law on Electromobility and Alternative Fuels suggests exemptions on excise taxes for electric passenger cars (BEVs PHEVs) FCEVs hybrid vehicles (HEVs) and mild hybrid electric vehicles (MHEVs) The excise tax is waived for zero-emission electric cars (BEVs FCEVs) without a defined timeframe In contrast for PHEVs the excise duty waiver is valid until February 2021 under current plans34 As an example The purchaser of a gasoline Volkswagen Golf with an engine capacity of 1498 cm3 has to pay excise duty of euro500 compared to almost euro600 for a diesel model (1968 cm3) Yet for a vehicle with a higher engine capacity ie above the threshold of 2000 cm3 one-time payments could reach several thousands of euros For a diesel Mercedes X-class sport utility vehicle with an engine displacement of 2298 cm3 the one-time excise duty would be more than euro5500 However for most brands sold in Europe the average engine displacement of new passenger cars has been below 2000 cm3 over the past 20 years35

Electric vehicle usage tax benefit (national)Unlike most countries in Europe the Polish government does not impose periodical ownership taxes for owning a car36 instead choosing to levy taxes on the fuel or electricity used to power the vehicle For Euro-Super 95 and diesel the tax share in

32 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo (25 June 2020) httpwwwnfosigwgovplo-nfosigwaktualnosciart1603nfosigw-dofinansuje-zakup-pojazdow-elektrycznychhtml

33 Kancelaria Sejmu Ustawa z dnia 6 grudnia 2008 r o podatku akcyzowym (Act of 6 December 2008 on excise duty) (8 May 2020) httpisapsejmgovplisapnsfdownloadxspWDU20090030011UD20090011Ljpdf

34 Ministry of State Assets ldquoExemption from excise duty on electric hybrid and hydrogen powered vehicles is not public aidrdquo (14 January 2019) httpswwwgovplwebaktywa-panstwowezwolnienie-z-podatku-akcyzowego-od-pojazdow-elektrycznych-hybrydowych-i-napedzanych-wodorem-nie-jest-pomoca-publiczna1fbclid=IwAR0CC5RiRfpWIUfyeuqlNR8vrg5m1oPNSjulnQLa8EgccyEnD65-kAWjeCg

35 Peter Mock ed European vehicle market statistics 20192020 (ICCT Washington DC 2019) httpstheicctorgpublicationseuropean-vehicle-market-statistics-20192020

36 ACEA ndash European Automobile Manufacturerrsquos Association ldquo2020 ACEA Tax Guiderdquo (2020) httpsaceabeuploadsnews_documentsACEA_Tax_Guide_2020pdf

9 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

the end consumer price was 58 and 54 respectively in July 202037 Taxes on fuels in Poland consist of a 23 VAT an excise tax of PLN 1520 (euro035) per 1000 liters for gasoline fuel and PLN 1151 (euro027) for diesel fuel and a fuel tax The fuel tax rates are PLN 15549 (euro36) for 1000 liters of gasoline and PLN 32334 (euro75) per 1000 liters of diesel38 In 2019 an emission surcharge of PLN 80 (euro19) per 1000 liters fuel (gasoline and diesel) was introduced to finance among others the development of electromobility in Poland39 In terms of electricity costs for charging an electric car households consuming between 5000 and 15000 kWh electricity per year paid about 18 tax on the end consumer price based on average prices for the second half of 201940

Excursus Effects of incentives and tax breaks on vehicle costsFigure 5 shows the effects of taxes tax breaks and one-time purchase incentives on the total cost of ownership for newly purchased cars For comparison we choose the gasoline and diesel versions of the Volkswagen Golf the best-selling passenger car model in the EU41 and the battery electric Nissan Leaf one of the few BEVs available in Poland that is eligible for a bonus The costs are shown over a period of 4 years discounted at 6 for annual cost components and assume private holders similar to previous studies42 In the absence of registration and ownership taxes the cost comparison includes the one-time costs of car purchase (base price VAT excise duty registration fee) and fuel costs differentiated by pre-tax and taxed price Information on fuel consumption is based on the New European Driving Cycle (NEDC) To reflect vehicle real-world consumption for fuel cost calculation we apply an adjustment factor of 137 for gasoline cars and 145 for diesel to the NEDC fuel consumption and energy consumption values43 Fuel prices as of July 6 202044 were used and electricity prices for household consumers with a consumption between 5000 and 15000 kWh were applied based on average prices in Poland in the second half of 2019 and the assumption that private holders charge their electric car at home45 Due to lack of data on average distance travelled in Poland per year we assume 13000 km46

37 European Commission Total taxation share in the end consumer price for Euro-Super 95 and diesel oil (25 May 2020) httpeceuropaeuenergymapsmaps_weekly_oil_bulletinlatest_taxation_oil_pricespdf

38 Minister Infrastruktury ldquoObwieszczenie ministra Infrastruktury z dnia 25 lutego 2020 r zmieniające obwieszczenie w sprawie wysokości stawki opłaty paliwowej na rok 2020 (Notice infrastructure minister of February 25 2020 amending the notice on the amount of the fuel surcharge rate for 2020)rdquo (25 February 2020) httpisapsejmgovplisapnsfdownloadxspWMP20200000211OM20200211pdf

39 Kancelaria Sejmu ldquoUSTAWA z dnia 27 kwietnia 2001 r Prawo ochrony środowiska (ACT of 27 April 2001 Environmental Protection Law)rdquo (27 April 2020) httpisapsejmgovplisapnsfdownloadxspWDU20010620627UD20010627Ljpdf

40 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

41 Peter Mock European vehicle market statistics 20192020 42 Sandra Wappelhorst Peter Mock ed and Zifei Yang Using vehicle taxation policy to lower transport emissions

An overview for passenger cars in Europe (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsEU_vehicle_taxation_Report_20181214_0pdf

43 Uwe Tietge Sonsoles Diacuteaz Peter Mock John German Anup Bandivadekar and Norbert Ligterink From laboratory to road ndash A 2016 update of official and lsquoreal-worldrsquo fuel consumption and CO2 values for passenger cars in Europe (ICCT Washington DC 2016) httpswwwtheicctorgsitesdefaultfilespublicationsICCT_LaboratoryToRoad_2016pdf

44 EC ndash European Commission Weekly Oil Bulletin (2020) httpseceuropaeuenergydata-analysisweekly-oil-bulletin_enredir=1

45 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

46 ACEA ndash European Automobile Manufacturerrsquos Association ldquoACEA Report Vehicles in use Europe 2018rdquo (2018) httpswwwaceabeuploadsstatistic_documentsACEA_Report_Vehicles_in_use-Europe_2018pdf

10 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

euro0

euro5000

euro10000

euro15000

euro20000

euro25000

euro30000

euro35000

4-y

ear

cons

umer

ow

ners

hip

co

sts

Bonus

Fuelelectricity (tax)

Fuelelectricity (pre-tax)

Registration fee

Excise duty

Value added tax

Base price

4-year costs

GasolineVolkswagen Golf

(110 kW 1498 cm3)

DieselVolkswagen Golf

(110 kW 1968 cm3)

BEVNissan Leaf

(110 kW 0 cm3)

euro4100

Figure 5 Comparison of 4-year consumer ownership costs for a gasoline and diesel Volkswagen Golf and BEV Nissan Leaf

Based on these assumptions comparing the conventional Volkswagen Golf models with the electric Nissan Leaf shows that the newly introduced bonus payment on car purchase brings the 4-year cost down by about euro4100 or 15 of the gross purchase price for the Nissan Leaf Yet even with the bonus included the Nissan Leaf still has a euro3000 cost disadvantage over the gasoline Volkswagen Golf Over a holding period of 4 years the cost disadvantage remains yet at a smaller level at over euro1000 The reduction is the result of the euro500 excise tax on gasoline and lower electricity costs of about euro1500 over 4 years compared to 4-year gasoline fuel costs of more than euro3000 In contrast compared to the Volkswagen Golf diesel the Nissan Leaf bears almost identical purchase costs and has a cost advantage of euro2000 over four years again due to the one-time bonus and advantages on excise tax and fuel costs

Electric vehicle company car benefit for employers and employees (national)In the end of 2019 only 32 of electric cars in Poland were owned by private individuals The majority of electric cars (68) were owned by businesses47 Of these leasing companies accounted for 50 carsharing companies for 18 and car dealers for 10 The remaining 22 accounted for manufacturer importers car rental companies and others The Law on Electromobility includes specific tax incentives for electric company cars This involves longer depreciation write-offs compared to conventional cars for companies purchasing a vehicle Under the current policy the maximum passenger car value that can be deducted if a company car is used for business purposes is PLN 150000 (euro35000) for combustion engine and hybrid cars For electric cars the amount is significantly higher at PLN 225000 (euro52000)48 In contrast to electric company cars only used for business purposes there are currently no special provisions for employees privately using an electric company car

Electric vehicle parking benefit The Electromobility Law exempts BEV drivers from parking fees in paid public parking zones The city of Szczecin already introduced preferential parking fees for

47 Krzyczkowska Zuzanna ldquoThere are already 10000 electric cars on Polish roads When will there be a millionrdquo Motopl 14 January 2020 httpsmotoplMotoPL78838925597232na-polskich-drogach-jest-juz-10-tysiecy-samochodow-elektrycznychhtml

48 PwC Doing business in Poland 2019 (2019) httpswwwpwcplplpdfdoing-bussiness-in-poland-2019pdf

11 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

low-emission vehicles in 2014 allowing owners of an electric or hybrid car emitting up to 100 g CO2km to buy a 12-month subscription for parking in the inner-city paid parking zone for PLN 10 (euro200)49 Reduced parking fees in other cities range from PLN 2 (euro050) per hour in the city of Wrocław50 to euro5 for 3-hour parking in Poznań51 Some cities also offer reduced parking fees for PHEVs such as the cities of Krakoacutew52 and Poznań53

Electric vehicle access benefit (national) According to the Electromobility Law local governments must allow BEV drivers access to bus lanes although cities can enact requirements on minimum occupancy to limit this access In addition the law gives local authorities a legal basis to implement clean transport zones (CTZs) allowing access to electric vehicles (BEVs FCEVs) and gas-powered vehicles (CNGs LPGs) only Despite the exclusion of PHEVs by definition municipalities can expand the catalogue of allowed vehicles to include PHEVs According to the law a CTZ can also only be established in city centers of cities with more than 100000 inhabitants A monetary penalty on non-compliant vehicles can be imposed and used for the purpose of marking the CTZs purchasing of zero-emission buses and covering the costs of performing analyses The maximum penalty for non-compliant vehicles cannot exceed PLN 250 PLN (euro050) per hour according to the law54 However the current regulations are too vague to be implemented by the municipalities and the government is therefore working on changing and specifying these regulations55 To date a CTZ has only been introduced in Krakoacutew starting in January 2019 However due to appeals of business owners living within the zone almost all constraints for combustion-engine vehicles in the zone have been abolished56 The city of Poznań performed a public consultation about the development of electromobility in the city between April and May 2020 including proposals for the introduction of a CTZ57

Electric vehicle charging benefit (local)In Poland no city offers a comprehensive network of free charging options for electric vehicles at city owned or managed public parking spaces Yet this policy is a common measure in the early electric vehicle transition stage in cities outside Poland such as

49 City Council of Szczecin ldquoCity Council of Szczecin of 26 May 2014 on the announcement of the consolidated text of the resolution on the establishment of a paid parking zone fees for parking vehicles on the public roads of the City of Szczecin and the way of collecting themrdquo (26 May 2014) httpssppszczecinplplikiuchwala-jtpdf

50 Wroclaw Paid parking zone (23 July 2019) httpswwwwroclawplenpaid-parking-zone 51 Telewizja ldquoThe last day of cheap parking in Poznanrdquo (29 May 2020) httpspoznantvppl48288715ostatni-

dzien-taniego-parkowania-w-poznaniu 52 Dziennik Urzędowy Wojewoacutedztwa Małopolskiego [Official journal province of Malopolska] Uchwala Nr

XXII45619 Rady Miasta Krakowa z dnia 17 lipca 2019 roku w sprawie zmiany uchwały Nr LXXXIX217717 Rady Miasta Krakowa z dnia 22 listopada 2017 r w sprawie ustalenia strefy płatnego parkowania ustalenia opłat za postoacutej pojazdoacutew samochodowych na drogach publicznych w strefie płatnego parkowania wprowadzenia opłaty abonamentowej dla niektoacuterych użytkownikoacutew droacuteg oraz sposobu pobierania tych opłat [Resolution No XXII45619 KRAKOW City Council of 17 July 2019 on the amendment of Resolution No LXXXIX217717 of the Krakow City Council of 22 November 2017 on the establishment of a paid parking zone the establishment of parking fees for motor vehicles on public roads in the paid parking zone the introduction of a subscription fee for certain road users and the method of collecting these fees] (17 July 2019) httpmikrakowplpdfakty-prawneuchwala-nr-xxii45619pdf

53 Telewizja ldquoThe last day of cheap parking in Poznanrdquo54 Law of 11 January 2018 on Electromobility and Alternative Fuels version from May 22 2020 Journal of Laws

httpssiplexplakty-prawnedzu-dziennik-ustawelektromobilnosc-i-paliwa-alternatywne-18683445 55 Łukasz Dubiński ldquoClean transport zones (administrative and legal analysis)rdquo (3 July 2019) httpswwwcirepl

item182937200000strefy-czystego-transportu-analiza-administracyjno-prawnahtml56 Municipal Krakow ABC of clean transport zone in Kazimierz (19 February 2019) httpswwwkrakowplaktual

nosci22658529komunikatabc_strefy_czystego_transportu_na_kazimierzuhtml Municipal Krakow ldquoWhat is left of the Clean Transport Zone in Kazimierzrdquo (6 March 2019) httpswww krakowplaktualnosci22793526komunikatco_zostalo_ze_strefy_czystego_transportu_na_kazimierzuhtml

57 Poznan City Hall ldquoPublic consultation on the draft Strategy for Electromobility Development for the City of Poznań until 2035 - INTERNET CONSULTATIONrdquo (2020) httpswwwpoznanplmimkonsultujemykonsultacje-spoleczne-dotyczace-strategii-rozwoju-elektromobilnosci-dla-miasta-poznania-do-roku-2035-konsultacje-internetowep381173812552515html

12 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Oslo and Paris58 There are selected programs such as in Warsaw where drivers of an electric vehicle can charge their car for free in one out of five assigned car parks if the driver possesses an ECO card59 An increasing number of retailers are also offering free charging at semi-public spaces

Public electric vehicle procurement (nationallocal)The Law on Electromobility also sets fleet and procurement targets for electric vehicles For the central administrationrsquos car fleet which includes government ministries at least 10 of the fleet is required to be comprised of electric vehicles from 2022 and at least 20 electric vehicles are required from 2023 The target for the share of electric vehicles in the fleets of local administrations with more than 50000 inhabitants is 10 by 2022 In addition the law sets targets for other vehicles in addition to passenger cars For example the target for zero-emission buses is 5 by 2021 10 by 2023 and 20 by 2025 in cities with more than 50000 inhabitants

To reach these targets local governments across Poland are beginning to introduce electric vehicles to their municipal fleets In terms of passenger cars the city council of Warsaw opened a tender in late 2019 to lease the first 16 electric cars for its municipal fleet60 In mid-2019 the city council of Wrocław added eight electric cars to its municipal fleet61 Krakoacutew ordered 47 electric cars in the end of 2019 which will be rented over a three year period62 The city of Poznań tested three electric and natural gas vehicles in early 202063 The municipal of Szczecin had just over 10 electric cars in its fleet in mid-201964

Policies driving charging infrastructure deployment Building the necessary charging infrastructure increasing consumerrsquos accessibility and addressing potential barriers is crucial in the transition to electric vehicles This includes public charging as well as the possibility to charge an electric car at home or at workplaces

Charging infrastructure goals (national)The National Framework for Alternative Fuels Infrastructure Development Policy includes a target of 6000 publicly accessible normal charging points and 400 fast charging points by the end of 202065 which is likely to be delayed by one year due to the impacts of the COVID-19 pandemic In comparison the German government has

58 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsEV_city_policies_white_paper_fv_20200224pdf

59 City Warsaw P+R car parks (21 May 2020) httpswarszawa19115pl-parkingi-p-r 60 Editorial Office in Warsaw ldquoTown hall invests in electric cars Officials will drive them for 5 yearsrdquo (12 January

2020) httpswarszawanaszemiastoplratusz-inwestuje-w-samochody-elektryczne-urzednicy-bedaarc1-7501377

61 Janusz Krzeszowski ldquoEco-friendly Nissan will replace the most worn-out combustion cars in the officerdquo (30 May 2019) httpswwwwroclawplsrodowiskoekologiczne-nissany-auta-elektryczne-w-urzedzie-miejskim-wroclawia

62 Wojciech Kwinta ldquoThe first electric cars for Krakow municipal institutions are already hererdquo inzynieriacom 3 November 2019 httpsinzynieriacomenergetykawiadomosci56970pierwsze-samochody-elektryczne-dla-krakowskich-instytucji-miejskich-juz-sa

63 Poznan City Hall ldquoThe city of Poznań is testing electric carsrdquo (3 February 2020) httpswwwpoznanplmiminfonewsmiasto-poznan-testuje-elektryczne-samochody143016html

64 Marcin Gigiel ldquoPresident Krzystek will use a company electric carrdquo (19 April 2019) httpswszczecinieplaktualnosciprezydent_krzystek_bedzie_korzystal_ze_sluzbowego_samochodu_elektrycznegoid-31640html

65 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

13 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

been funding the deployment of publicly accessible charging stations over the past years with the aim to install at least 15000 by the end of 202066

The Law on Electromobility also specifies goals for the roll-out of the alternative-fuels infrastructure in cities including charging stations for electric vehicles Deployment targets depend on the population number of registered cars and the level of motorization According to the law by the end of 2020 there must be 1000 publicly available electric car charging stations available in cities with more than 1 million inhabitants where at least 600000 motor vehicles have been registered and where the motorization level is at least 700 motor vehicles per 1000 inhabitants The number of envisaged public charging stations gradually decreases to 60 in cities with more than 100000 inhabitants at least 60000 vehicles on the roads and at least 400 vehicles per 1000 inhabitants Apart from city targets the legislation also considers the provision of charging infrastructure on main transit routes without specifying target figures

Charging infrastructure promotion (nationallocal)As part of the incentive schemes for BEVs introduced by the Polish government at the end of June 2020 aid is also provided for installing charging infrastructure when purchasing or leasing a new car Businesses purchasing or leasing a zero-emission van under the national eVAN support program can receive 50 of the eligible costs at a maximum aid of PLN 5000 (euro1200) for a charging point up to 22 kW Micro small and medium-sized businesses purchasing or leasing a passenger car as part of the Koliber program can claim 20 of the eligible cost for a charging point up to 22 kW but no more than PLN 25000 (euro5800)67

Outside of national funding for charging points in the business and workplace context there are no specific schemes targeting public and private charging options On a local level there are also no support programs offered by the authorities at current

Electric vehicle ready building codes (nationallocal)According to the Law on Electromobility parking spaces in all newly built public and multi-family buildings shall be equipped with electrical wiring for charging capacities of at least 37 kW This applies to new developments in municipalities with over 100000 inhabitants where more than 60000 vehicles are registered and where the motorization rate is at least 400 cars per 1000 inhabitants Beyond the Law on Electromobility there are currently no implementation provisions which specify the share or number of parking spaces to be equipped A draft ordinance by the Minister of Energy published in May 2019 suggests for public buildings a minimum connection capacity of 20 of the planned number of parking spaces and 37 kW For multi-family buildings the minimum connection capacity is 100 of the planned number of parking spaces and 37 kilowatts kW68 The draft regulation is still in consultation

Beyond the national regulations there are no specific or additional local-level laws

66 Federal Ministry of Transport and Digital Infrastructure ldquoFunding guideline for charging infrastructure for electric vehiclesrdquo (2020) httpswwwbmvideSharedDocsDEArtikelGfoerderrichtlinie-ladeinfrastruktur-elektrofahrzeugehtml

67 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo

68 Minister of Energy Projekt z dnia 25 kwietnia 2019 r Rozporządzenie Ministra Energii z dnia hellip w sprawie sposobu ustalania mocy przyłączeniowej dla wewnętrznych i zewnętrznych stanowisk postojowych związanych z budynkami użyteczności publicznej oraz budynkami mieszkalnymi wielorodzinnymi (Draft of 25 April 2019 Management Minister of Energy from the day on the method of determining the connection capacity for internal and external parking spaces related to public buildings and multi-family residential buildings) (25 April 2019) httpslegislacjarclgovpldocs567123217531259125812591259dokument394845pdf

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 3: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

3 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

0

10

20

30

40

50

60

0

20000

40000

60000

80000

100000

120000

Norway

Iceland

Netherlands

Sweden

Finland

Portugal

Switzerland

Denmark

Ireland

Austria

Belgium

UnitedKingdom

Germany

France

Hungary

Spain

Romania

Slovenia

Italy

Bulgaria

Latvia

Poland

CzechRepublic

Greece

Slovakia

Lithuania

Estonia

2019

ele

ctri

c p

asse

nger

car

reg

istr

atio

n sh

are

2019

ele

ctri

c p

asse

nger

car

reg

istr

atio

ns

Total electric vehicles Electric vehicle share

Figure 1 Total and share of new electric passenger car registrations in select European countries in 2019

Figure 2 shows the share of electric passenger car registrations by subregion (Polish podregiony) using Nomenclature of Territorial Units for Statistics third level (NUTS 3) jurisdictions13 One or more NUTS 3 subregions with at least 250000 inhabitants are defined as metropolitan regions14 Non-metropolitan subregions are typically more rural areas characterized by small and medium-sized towns and municipalities The figure illustrates that generally metropolitan regions with larger cities such as Warsaw and Szczecin experienced the highest electric passenger car uptakes In total 92 of all new electric cars were registered in metropolitan regions compared to 8 in the non-metropolitan subregions This ratio was similar for BEVs and PHEVs The corresponding rate for all new passenger car registrations was 81 in metropolitan regions versus 19 in more rural areas

13 See information on Nomenclature of Territorial Units for Statistics (NUTS) classification and Metropolitan regions ldquoRegions and cities ndash Overviewrdquo Eurostat accessed July 9 2020 httpseceuropaeueurostatwebregions-and-citiesoverview

14 Eurostat Metropolitan regions (nd) httpseceuropaeueurostatwebmetropolitan-regionsbackground

4 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

0lt0202-0505-075075-1gt1

Metropolitanregions

2019 passenger carsElectric vehicle share

WrocławWrocław

ŁoacutedźŁoacutedź

SzczecinSzczecinSzczecin

PoznańPoznańPoznań

KaliskiKaliskiKaliski

WrocławCzęstochowaCzęstochowaCzęstochowa

Łoacutedź

KielceKielceKielce

LublinLublinLublin

BiałystokBiałystokBiałystok

WarsawWarsawWarsaw

KrakoacutewKrakoacutewKrakoacutew

RzeszoacutewRzeszoacutewRzeszoacutew

Bydgoszcz-ToruńBydgoszcz-ToruńBydgoszcz-Toruń

OlsztynOlsztynOlsztyn

KatowiceKatowiceKatowiceTarnoacutewTarnoacutewTarnoacutew

RadomRadomRadom

OpoleOpoleOpole

Bielsko-BiałaBielsko-BiałaBielsko-Biała

GdańskGdańskGdańsk

Figure 2 2019 registration share of electric passenger cars in Poland by NUTS 3 regions Map adapted from Dale Hall Sandra Wappelhorst Peter Mock and Nic Lutsey European electric vehicle factbook (ICCT Washington DC 2020) httpstheicctorgpublicationseuropean-electric-vehicle-factbook-20192020

The majority of new electric passenger cars were registered in the capital city of Warsaw (1300) accounting for the second-highest share in Poland with 10 The city of Szczecin recorded the highest share at 11 but represented a significantly smaller market with only about 100 new electric cars registered throughout 2019 The subregions with the third- and fourth-highest shares were outside the metropolitan regions The subregion of Wrocław adjacent to the city of Wrocław and home of the production plant of the battery cell manufacturer LG Chem accounted for a 09 share and the subregion of Kaliski north east of Wrocław had a share of 06

Poland recorded a positive trend in BEV and PHEV adoption over the past months (Figure 3) By the end of 2019 there were over 8600 electric passenger cars on Polandrsquos roads At the end of June 2020 the number was almost 1230015 Since July 2019 the electric passenger car stock in Poland showed a slow but steady increase This increase slowed to +4 in April 2020 compared to +9 in March likely as the result of the COVID-19 outbreak but recovered slightly in May and June with an increase of +5 each compared to the previous month While PHEVs recorded the highest uptakes in February and March of +11 and +13 respectively the development for BEVs was more balanced with the highest increase of +6 in both January and March 2020 compared to the electric passenger car stock of the previous month However in comparison to larger electric vehicle markets stock figures are still at a very low level In Germany for instance the electric passenger car stock accounted for almost 240000 vehicles by the end of 2019 more than 27-times higher than Poland16 On a per capita basis there were

15 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) ldquoE-mobility indexrdquo (21 July 2020) httpswwwpzpmorgplenAutomotive-marketE-mobility-indexYear-2020E-mobility-index-June-20202

16 Kraftfahrt-Bundesamt Annual balance ndash vehicle stock (2020) httpswwwkbadeDEStatistikFahrzeugeBestandJahresbilanzb_jahresbilanz_inhalthtmlnn=2601598

5 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

02 electric passenger cars per 1000 inhabitants in Poland compared to 3 electric cars per 1000 inhabitants in Germany

0

2000

4000

6000

8000

10000

12000

14000

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Ele

ctri

c p

asse

nger

car

sto

ck

Plug-inhybridelectricvehicles

Batteryelectricvehicles

Figure 3 Development of electric passenger car stock in Poland between July 2019 and June 2020

To create demand for electric vehicles and drive their uptake a certain number of models on the market is crucial17 In 2019 new registrations of passenger cars in Poland included eight different battery electric and 14 plug-in hybrid models only taking into account those models with at least 20 registrations The top three favorable BEV models were the BMW i3 the Nissan Leaf and the Hyundai Kona For PHEVs the Mini Countryman the BMW 530 and the Kia Optima accounted for the largest registration shares among all new electric passenger car registrations In comparison consumers in Germany registered about 30 different BEV and almost 40 PHEV models in 201918

In parallel with the increasing number of electric passenger cars in Poland the public charging infrastructure network has been continuously extended The number of charging stations increased between July 2019 and June 2020 from almost 800 to about 1200 (Figure 4)19 The majority of charging stations (67) were alternating current (AC) compared to 33 being direct current (DC) charging stations The number of AC charging stations experienced the highest increase in August 2019 (+16) while DC charging stations increased by +7 in January 2020 By the end of June 2020 drivers of an electric vehicle had access to over 2200 public charging points an electric vehicle to charging point ratio of 51 more favorable than the ratio of around 101 recommended by the European Commission in 2014 as part of the Alternative Fuels Infrastructure Directive20 By the end of June 2020 64 of the public charging points were Type 1 (up to 74 kW AC) and Type 2 (up to 43 kW AC) 15 CHAdeMO (up to 50 kW ACDC) 14 CCS (up to 50 kW ACDC) and 7 Tesla Supercharger charging points

17 Peter Slowik and Nic Lutsey The continued transition to electric vehicles in US cities (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsTransition_EV_US_Cities_20180724pdf

18 Dale Hall Sandra Wappelhorst Peter Mock and Nic Lutsey European electric vehicle factbook (ICCT Washington DC 2020) httpstheicctorgpublicationseuropean-electric-vehicle-factbook-20192020

19 Polski Związek Przemysłu Motoryzacyjnego ldquoE-mobility indexrdquo20 Official Journal of the European Union Directive 201494EU of the European Parliament and of the Council

of 22 October 2014 on the deployment of alternative fuels infrastructure (22 October 2014) httpseur-lexeuropaeulegal-contentENTXTuri=celex3A32014L0094

6 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

0

200

400

600

800

1000

1200

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Cha

rgin

g s

tati

ons

in o

per

atio

n

DCchargingstations

ACchargingstations

Figure 4 Charging stations in operation in Poland between July 2019 and June 2020

Most of the public charging infrastructure network has been rolled out in major cities By the end of June 2020 there were almost 150 charging stations available in Warsaw followed by Katowice (over 70) Krakoacutew Gdańsk and Wrocław with about 50 charging stations each and Poznań (almost 40)21

Policies driving the electric passenger car market The Polish national government has adopted a variety of policies to drive the electrification of its vehicle fleet At local levels authorities are increasingly using their power to spur electric vehicle adoption yet with different approaches22 The following section gives an overview of these developments and future plans with focus on the passenger car market Despite many actions at local levels we focus on policies adapted in the cities of Krakoacutew Poznań Szczecin Warsaw and Wrocław which recorded the highest electric vehicle uptakes in 2019 The majority or 68 of all new electric passenger cars were registered in these five cities in 2019

Electric vehicle goals (nationallocal)The Polish government has set ambitious targets for the adoption of electric vehicles In 2016 the government announced a goal to have 1 million electric vehicles on its roads by 2025 The ldquoStrategy for Sustainable Transport Development until 2030rdquo from September 2019 altered this plan stating that ldquothe number of electric and hybrid cars could reach 600000 by 2030rdquo23 As outlined in the strategy the goal encompasses BEVs PHEVs FCEVs and hybrid electric vehicles (HEVs) In the short-term the government aims to have 50000 electric vehicles on the roads of the 32 Polish agglomerations by the end

21 Polski Związek Przemysłu Motoryzacyjnego ldquoE-mobility indexrdquo22 Monika Helak ldquoRanking elektromobilnych miast Jak polskie samorządy wprowadzają e-rewolucję

w transporcie (Ranking of electromobility cities How do Polish local governments introduce the e-revolution in transport)rdquo (Polityka Insight November 2019) httpswwwpolitykainsightplen_resourcemultimedium20182683

23 Ministry of Infrastructure ldquoStrategy for Sustainable Transport Development until 2030rdquo (24 September 2019) httpswwwgovplwebinfrastrukturaprojekt-strategii-zrownowazonego-rozwoju-transportu-do-2030-roku2

7 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

of 2020 as identified in the National Framework for Alternative Fuels Infrastructure Development Policy24

At the city level Warsaw has pledged to make a major area of its city zero emission by 2030 The city is part of the global C40 network and is one of 35 cities which signed the Fossil Fuel Free Streets Declaration pledging to reduce the number of polluting vehicles on streets and a transitioning away from vehicles powered by fossil fuels25

Electric vehicle strategic and legal framework Over the past years the Polish government has published and adopted a number of strategic plans and legal frameworks and provided funding to support the uptake of electric vehicles in the country

raquo In March 2017 the government adopted the Electromobility Development Plan which provides a strategy for electric vehicle and charging infrastructure deployment in Poland with the aim to improve air quality and foster economic growth26

raquo In the same month the government adopted the National Framework for Alternative Fuels Infrastructure Development Policy in order to implement EU Directive 201494 on the deployment of alternative fuels infrastructure The framework includes the goal to install 6400 charging points including 400 fast charging points on the Trans-European Transport Network (TEN-T) by 202027

raquo The Law on Electromobility and Alternative Fuels came into force in February 2018 and is the first legislation on electromobility in Poland It lists detailed targets and measures for the uptake of electric vehicles by public institutions including public transportation vehicles and charging infrastructure in most populated cities (over 100000 inhabitants)28

raquo In June 2018 the Law on Biocomponents and Liquid Biofuels was amended and introduced the Low Emission Transport Fund to promote the development of alternative fueled vehicles29 In July 2019 the management of the Fund was entrusted to the National Fund for Environmental Protection and Water Management which took on the task of funding the electrification of Polandrsquos vehicle fleet30

At local levels the government with co-funding from the EU is supporting the efforts of municipalities to grow the electrification of its fleets For example within the national program GEPARD II funding is provided for over 200 local governments to develop electromobility strategies31

24 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

25 C40 Cities Climate Leadership Group Our Commitment to Green and Healthy Streets Fossil Fuel Free Streets Declaration (accessed 29 April 2020) httpswwwc40orgothergreen-and-healthy-streets

26 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo 27 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo28 Kancelaria Sejmu (Chancellery of the Seym) Ustawa z dnia 11 stycznia 2018 r o elektromobilności i paliwach

alternatywnych [Law of 11 January 2018 on electromobility and alternative fuels] (2018) httpprawosejmgovplisapnsfdownloadxspWDU20180000317TD20180317Lpdf

29 Ministry of Climate Low Emission Transport Fund (nd) httpswwwgovplwebklimatfundusz-niskoemisyjnego-transportu

30 Kancelaria Sejmu Dz U 2019 poz 1527 USTAWA z dnia 19 lipca 2019 r o zmianie ustawy o biokomponentach i biopaliwach ciekłych oraz niektoacuterych innych ustaw [Dz Laws of 2019 item 1527 LAW of 19 July 2019 on amending the act on biocomponents and liquid biofuels and some other acts) (July 2019) httpsisapsejmgovplisapnsfdownloadxspWDU20190001527TD20191527Lpdffbclid=IwAR3vV4S81Y_kMoEKtR75PC-yC0eKGY2FRWLiH9rlu6aNSNPf2_na8yAXsbY

31 National Fund for Environmental Protection and Water Management ldquoGEPARD II - low-emission transport Part 2 Strategy for electromobility developmentrdquo (2020) httpnfosigwgovploferta-finansowaniasrodki-krajoweprogramy-priorytetowegepard-ii--transport-niskoemisyjny-czesc-2informacje-o-naborze-

8 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

BEV and PHEV purchase incentives (national)To address the cost gap between electric and conventional cars the Polish government launched three incentive schemes in June 2020 for the purchase of a new electric vehicle not previously registered32 One incentive scheme called ldquoGreen Carrdquo is targeted at private individuals and supports the purchase of a new purely electric (BEV or FCEV) car The aid covers 15 of the purchase price with a maximum amount of PLN 18750 (euro4400) and is capped at a gross purchase price of PLN 125000 (euro29000) Another program ldquoeVANrdquo provides one-time incentives up to PLN 70000 (euro16000) for businesses purchasing or leasing a zero-emission delivery van The third program under the name ldquoKoliberrdquo benefits micro small and medium-sized businesses and targets zero-emission passenger transport The purchase or lease of an electric car is supported with up to PLN 25000 (euro6000) The budget secured by the government for all three programs will allow the co-financing of about 4000 electric cars and vans All programs are aimed at the purchases of new BEVs rather than PHEVs

Electric vehicle registration tax benefit (national)In Poland taxes and fees apply when purchasing or registering a car for the first time This includes one-time payments such as value added tax (VAT) a registration fee and excise duty VAT accounts for 23 of the vehiclersquos price without exemptions for electric cars A registration tax is not imposed when registering a vehicle for the first time Only a registration fee and a fee for an identification card is necessary totalling about euro60 without benefits for purchasers of an electric car When registering a new or used imported passenger car in Poland for the first time an excise tax of 31 of a vehiclersquos net value is imposed if the engine capacity is up to 2000 cm3 and 186 is imposed for cars above 2000 cm3 33 The Law on Electromobility and Alternative Fuels suggests exemptions on excise taxes for electric passenger cars (BEVs PHEVs) FCEVs hybrid vehicles (HEVs) and mild hybrid electric vehicles (MHEVs) The excise tax is waived for zero-emission electric cars (BEVs FCEVs) without a defined timeframe In contrast for PHEVs the excise duty waiver is valid until February 2021 under current plans34 As an example The purchaser of a gasoline Volkswagen Golf with an engine capacity of 1498 cm3 has to pay excise duty of euro500 compared to almost euro600 for a diesel model (1968 cm3) Yet for a vehicle with a higher engine capacity ie above the threshold of 2000 cm3 one-time payments could reach several thousands of euros For a diesel Mercedes X-class sport utility vehicle with an engine displacement of 2298 cm3 the one-time excise duty would be more than euro5500 However for most brands sold in Europe the average engine displacement of new passenger cars has been below 2000 cm3 over the past 20 years35

Electric vehicle usage tax benefit (national)Unlike most countries in Europe the Polish government does not impose periodical ownership taxes for owning a car36 instead choosing to levy taxes on the fuel or electricity used to power the vehicle For Euro-Super 95 and diesel the tax share in

32 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo (25 June 2020) httpwwwnfosigwgovplo-nfosigwaktualnosciart1603nfosigw-dofinansuje-zakup-pojazdow-elektrycznychhtml

33 Kancelaria Sejmu Ustawa z dnia 6 grudnia 2008 r o podatku akcyzowym (Act of 6 December 2008 on excise duty) (8 May 2020) httpisapsejmgovplisapnsfdownloadxspWDU20090030011UD20090011Ljpdf

34 Ministry of State Assets ldquoExemption from excise duty on electric hybrid and hydrogen powered vehicles is not public aidrdquo (14 January 2019) httpswwwgovplwebaktywa-panstwowezwolnienie-z-podatku-akcyzowego-od-pojazdow-elektrycznych-hybrydowych-i-napedzanych-wodorem-nie-jest-pomoca-publiczna1fbclid=IwAR0CC5RiRfpWIUfyeuqlNR8vrg5m1oPNSjulnQLa8EgccyEnD65-kAWjeCg

35 Peter Mock ed European vehicle market statistics 20192020 (ICCT Washington DC 2019) httpstheicctorgpublicationseuropean-vehicle-market-statistics-20192020

36 ACEA ndash European Automobile Manufacturerrsquos Association ldquo2020 ACEA Tax Guiderdquo (2020) httpsaceabeuploadsnews_documentsACEA_Tax_Guide_2020pdf

9 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

the end consumer price was 58 and 54 respectively in July 202037 Taxes on fuels in Poland consist of a 23 VAT an excise tax of PLN 1520 (euro035) per 1000 liters for gasoline fuel and PLN 1151 (euro027) for diesel fuel and a fuel tax The fuel tax rates are PLN 15549 (euro36) for 1000 liters of gasoline and PLN 32334 (euro75) per 1000 liters of diesel38 In 2019 an emission surcharge of PLN 80 (euro19) per 1000 liters fuel (gasoline and diesel) was introduced to finance among others the development of electromobility in Poland39 In terms of electricity costs for charging an electric car households consuming between 5000 and 15000 kWh electricity per year paid about 18 tax on the end consumer price based on average prices for the second half of 201940

Excursus Effects of incentives and tax breaks on vehicle costsFigure 5 shows the effects of taxes tax breaks and one-time purchase incentives on the total cost of ownership for newly purchased cars For comparison we choose the gasoline and diesel versions of the Volkswagen Golf the best-selling passenger car model in the EU41 and the battery electric Nissan Leaf one of the few BEVs available in Poland that is eligible for a bonus The costs are shown over a period of 4 years discounted at 6 for annual cost components and assume private holders similar to previous studies42 In the absence of registration and ownership taxes the cost comparison includes the one-time costs of car purchase (base price VAT excise duty registration fee) and fuel costs differentiated by pre-tax and taxed price Information on fuel consumption is based on the New European Driving Cycle (NEDC) To reflect vehicle real-world consumption for fuel cost calculation we apply an adjustment factor of 137 for gasoline cars and 145 for diesel to the NEDC fuel consumption and energy consumption values43 Fuel prices as of July 6 202044 were used and electricity prices for household consumers with a consumption between 5000 and 15000 kWh were applied based on average prices in Poland in the second half of 2019 and the assumption that private holders charge their electric car at home45 Due to lack of data on average distance travelled in Poland per year we assume 13000 km46

37 European Commission Total taxation share in the end consumer price for Euro-Super 95 and diesel oil (25 May 2020) httpeceuropaeuenergymapsmaps_weekly_oil_bulletinlatest_taxation_oil_pricespdf

38 Minister Infrastruktury ldquoObwieszczenie ministra Infrastruktury z dnia 25 lutego 2020 r zmieniające obwieszczenie w sprawie wysokości stawki opłaty paliwowej na rok 2020 (Notice infrastructure minister of February 25 2020 amending the notice on the amount of the fuel surcharge rate for 2020)rdquo (25 February 2020) httpisapsejmgovplisapnsfdownloadxspWMP20200000211OM20200211pdf

39 Kancelaria Sejmu ldquoUSTAWA z dnia 27 kwietnia 2001 r Prawo ochrony środowiska (ACT of 27 April 2001 Environmental Protection Law)rdquo (27 April 2020) httpisapsejmgovplisapnsfdownloadxspWDU20010620627UD20010627Ljpdf

40 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

41 Peter Mock European vehicle market statistics 20192020 42 Sandra Wappelhorst Peter Mock ed and Zifei Yang Using vehicle taxation policy to lower transport emissions

An overview for passenger cars in Europe (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsEU_vehicle_taxation_Report_20181214_0pdf

43 Uwe Tietge Sonsoles Diacuteaz Peter Mock John German Anup Bandivadekar and Norbert Ligterink From laboratory to road ndash A 2016 update of official and lsquoreal-worldrsquo fuel consumption and CO2 values for passenger cars in Europe (ICCT Washington DC 2016) httpswwwtheicctorgsitesdefaultfilespublicationsICCT_LaboratoryToRoad_2016pdf

44 EC ndash European Commission Weekly Oil Bulletin (2020) httpseceuropaeuenergydata-analysisweekly-oil-bulletin_enredir=1

45 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

46 ACEA ndash European Automobile Manufacturerrsquos Association ldquoACEA Report Vehicles in use Europe 2018rdquo (2018) httpswwwaceabeuploadsstatistic_documentsACEA_Report_Vehicles_in_use-Europe_2018pdf

10 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

euro0

euro5000

euro10000

euro15000

euro20000

euro25000

euro30000

euro35000

4-y

ear

cons

umer

ow

ners

hip

co

sts

Bonus

Fuelelectricity (tax)

Fuelelectricity (pre-tax)

Registration fee

Excise duty

Value added tax

Base price

4-year costs

GasolineVolkswagen Golf

(110 kW 1498 cm3)

DieselVolkswagen Golf

(110 kW 1968 cm3)

BEVNissan Leaf

(110 kW 0 cm3)

euro4100

Figure 5 Comparison of 4-year consumer ownership costs for a gasoline and diesel Volkswagen Golf and BEV Nissan Leaf

Based on these assumptions comparing the conventional Volkswagen Golf models with the electric Nissan Leaf shows that the newly introduced bonus payment on car purchase brings the 4-year cost down by about euro4100 or 15 of the gross purchase price for the Nissan Leaf Yet even with the bonus included the Nissan Leaf still has a euro3000 cost disadvantage over the gasoline Volkswagen Golf Over a holding period of 4 years the cost disadvantage remains yet at a smaller level at over euro1000 The reduction is the result of the euro500 excise tax on gasoline and lower electricity costs of about euro1500 over 4 years compared to 4-year gasoline fuel costs of more than euro3000 In contrast compared to the Volkswagen Golf diesel the Nissan Leaf bears almost identical purchase costs and has a cost advantage of euro2000 over four years again due to the one-time bonus and advantages on excise tax and fuel costs

Electric vehicle company car benefit for employers and employees (national)In the end of 2019 only 32 of electric cars in Poland were owned by private individuals The majority of electric cars (68) were owned by businesses47 Of these leasing companies accounted for 50 carsharing companies for 18 and car dealers for 10 The remaining 22 accounted for manufacturer importers car rental companies and others The Law on Electromobility includes specific tax incentives for electric company cars This involves longer depreciation write-offs compared to conventional cars for companies purchasing a vehicle Under the current policy the maximum passenger car value that can be deducted if a company car is used for business purposes is PLN 150000 (euro35000) for combustion engine and hybrid cars For electric cars the amount is significantly higher at PLN 225000 (euro52000)48 In contrast to electric company cars only used for business purposes there are currently no special provisions for employees privately using an electric company car

Electric vehicle parking benefit The Electromobility Law exempts BEV drivers from parking fees in paid public parking zones The city of Szczecin already introduced preferential parking fees for

47 Krzyczkowska Zuzanna ldquoThere are already 10000 electric cars on Polish roads When will there be a millionrdquo Motopl 14 January 2020 httpsmotoplMotoPL78838925597232na-polskich-drogach-jest-juz-10-tysiecy-samochodow-elektrycznychhtml

48 PwC Doing business in Poland 2019 (2019) httpswwwpwcplplpdfdoing-bussiness-in-poland-2019pdf

11 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

low-emission vehicles in 2014 allowing owners of an electric or hybrid car emitting up to 100 g CO2km to buy a 12-month subscription for parking in the inner-city paid parking zone for PLN 10 (euro200)49 Reduced parking fees in other cities range from PLN 2 (euro050) per hour in the city of Wrocław50 to euro5 for 3-hour parking in Poznań51 Some cities also offer reduced parking fees for PHEVs such as the cities of Krakoacutew52 and Poznań53

Electric vehicle access benefit (national) According to the Electromobility Law local governments must allow BEV drivers access to bus lanes although cities can enact requirements on minimum occupancy to limit this access In addition the law gives local authorities a legal basis to implement clean transport zones (CTZs) allowing access to electric vehicles (BEVs FCEVs) and gas-powered vehicles (CNGs LPGs) only Despite the exclusion of PHEVs by definition municipalities can expand the catalogue of allowed vehicles to include PHEVs According to the law a CTZ can also only be established in city centers of cities with more than 100000 inhabitants A monetary penalty on non-compliant vehicles can be imposed and used for the purpose of marking the CTZs purchasing of zero-emission buses and covering the costs of performing analyses The maximum penalty for non-compliant vehicles cannot exceed PLN 250 PLN (euro050) per hour according to the law54 However the current regulations are too vague to be implemented by the municipalities and the government is therefore working on changing and specifying these regulations55 To date a CTZ has only been introduced in Krakoacutew starting in January 2019 However due to appeals of business owners living within the zone almost all constraints for combustion-engine vehicles in the zone have been abolished56 The city of Poznań performed a public consultation about the development of electromobility in the city between April and May 2020 including proposals for the introduction of a CTZ57

Electric vehicle charging benefit (local)In Poland no city offers a comprehensive network of free charging options for electric vehicles at city owned or managed public parking spaces Yet this policy is a common measure in the early electric vehicle transition stage in cities outside Poland such as

49 City Council of Szczecin ldquoCity Council of Szczecin of 26 May 2014 on the announcement of the consolidated text of the resolution on the establishment of a paid parking zone fees for parking vehicles on the public roads of the City of Szczecin and the way of collecting themrdquo (26 May 2014) httpssppszczecinplplikiuchwala-jtpdf

50 Wroclaw Paid parking zone (23 July 2019) httpswwwwroclawplenpaid-parking-zone 51 Telewizja ldquoThe last day of cheap parking in Poznanrdquo (29 May 2020) httpspoznantvppl48288715ostatni-

dzien-taniego-parkowania-w-poznaniu 52 Dziennik Urzędowy Wojewoacutedztwa Małopolskiego [Official journal province of Malopolska] Uchwala Nr

XXII45619 Rady Miasta Krakowa z dnia 17 lipca 2019 roku w sprawie zmiany uchwały Nr LXXXIX217717 Rady Miasta Krakowa z dnia 22 listopada 2017 r w sprawie ustalenia strefy płatnego parkowania ustalenia opłat za postoacutej pojazdoacutew samochodowych na drogach publicznych w strefie płatnego parkowania wprowadzenia opłaty abonamentowej dla niektoacuterych użytkownikoacutew droacuteg oraz sposobu pobierania tych opłat [Resolution No XXII45619 KRAKOW City Council of 17 July 2019 on the amendment of Resolution No LXXXIX217717 of the Krakow City Council of 22 November 2017 on the establishment of a paid parking zone the establishment of parking fees for motor vehicles on public roads in the paid parking zone the introduction of a subscription fee for certain road users and the method of collecting these fees] (17 July 2019) httpmikrakowplpdfakty-prawneuchwala-nr-xxii45619pdf

53 Telewizja ldquoThe last day of cheap parking in Poznanrdquo54 Law of 11 January 2018 on Electromobility and Alternative Fuels version from May 22 2020 Journal of Laws

httpssiplexplakty-prawnedzu-dziennik-ustawelektromobilnosc-i-paliwa-alternatywne-18683445 55 Łukasz Dubiński ldquoClean transport zones (administrative and legal analysis)rdquo (3 July 2019) httpswwwcirepl

item182937200000strefy-czystego-transportu-analiza-administracyjno-prawnahtml56 Municipal Krakow ABC of clean transport zone in Kazimierz (19 February 2019) httpswwwkrakowplaktual

nosci22658529komunikatabc_strefy_czystego_transportu_na_kazimierzuhtml Municipal Krakow ldquoWhat is left of the Clean Transport Zone in Kazimierzrdquo (6 March 2019) httpswww krakowplaktualnosci22793526komunikatco_zostalo_ze_strefy_czystego_transportu_na_kazimierzuhtml

57 Poznan City Hall ldquoPublic consultation on the draft Strategy for Electromobility Development for the City of Poznań until 2035 - INTERNET CONSULTATIONrdquo (2020) httpswwwpoznanplmimkonsultujemykonsultacje-spoleczne-dotyczace-strategii-rozwoju-elektromobilnosci-dla-miasta-poznania-do-roku-2035-konsultacje-internetowep381173812552515html

12 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Oslo and Paris58 There are selected programs such as in Warsaw where drivers of an electric vehicle can charge their car for free in one out of five assigned car parks if the driver possesses an ECO card59 An increasing number of retailers are also offering free charging at semi-public spaces

Public electric vehicle procurement (nationallocal)The Law on Electromobility also sets fleet and procurement targets for electric vehicles For the central administrationrsquos car fleet which includes government ministries at least 10 of the fleet is required to be comprised of electric vehicles from 2022 and at least 20 electric vehicles are required from 2023 The target for the share of electric vehicles in the fleets of local administrations with more than 50000 inhabitants is 10 by 2022 In addition the law sets targets for other vehicles in addition to passenger cars For example the target for zero-emission buses is 5 by 2021 10 by 2023 and 20 by 2025 in cities with more than 50000 inhabitants

To reach these targets local governments across Poland are beginning to introduce electric vehicles to their municipal fleets In terms of passenger cars the city council of Warsaw opened a tender in late 2019 to lease the first 16 electric cars for its municipal fleet60 In mid-2019 the city council of Wrocław added eight electric cars to its municipal fleet61 Krakoacutew ordered 47 electric cars in the end of 2019 which will be rented over a three year period62 The city of Poznań tested three electric and natural gas vehicles in early 202063 The municipal of Szczecin had just over 10 electric cars in its fleet in mid-201964

Policies driving charging infrastructure deployment Building the necessary charging infrastructure increasing consumerrsquos accessibility and addressing potential barriers is crucial in the transition to electric vehicles This includes public charging as well as the possibility to charge an electric car at home or at workplaces

Charging infrastructure goals (national)The National Framework for Alternative Fuels Infrastructure Development Policy includes a target of 6000 publicly accessible normal charging points and 400 fast charging points by the end of 202065 which is likely to be delayed by one year due to the impacts of the COVID-19 pandemic In comparison the German government has

58 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsEV_city_policies_white_paper_fv_20200224pdf

59 City Warsaw P+R car parks (21 May 2020) httpswarszawa19115pl-parkingi-p-r 60 Editorial Office in Warsaw ldquoTown hall invests in electric cars Officials will drive them for 5 yearsrdquo (12 January

2020) httpswarszawanaszemiastoplratusz-inwestuje-w-samochody-elektryczne-urzednicy-bedaarc1-7501377

61 Janusz Krzeszowski ldquoEco-friendly Nissan will replace the most worn-out combustion cars in the officerdquo (30 May 2019) httpswwwwroclawplsrodowiskoekologiczne-nissany-auta-elektryczne-w-urzedzie-miejskim-wroclawia

62 Wojciech Kwinta ldquoThe first electric cars for Krakow municipal institutions are already hererdquo inzynieriacom 3 November 2019 httpsinzynieriacomenergetykawiadomosci56970pierwsze-samochody-elektryczne-dla-krakowskich-instytucji-miejskich-juz-sa

63 Poznan City Hall ldquoThe city of Poznań is testing electric carsrdquo (3 February 2020) httpswwwpoznanplmiminfonewsmiasto-poznan-testuje-elektryczne-samochody143016html

64 Marcin Gigiel ldquoPresident Krzystek will use a company electric carrdquo (19 April 2019) httpswszczecinieplaktualnosciprezydent_krzystek_bedzie_korzystal_ze_sluzbowego_samochodu_elektrycznegoid-31640html

65 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

13 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

been funding the deployment of publicly accessible charging stations over the past years with the aim to install at least 15000 by the end of 202066

The Law on Electromobility also specifies goals for the roll-out of the alternative-fuels infrastructure in cities including charging stations for electric vehicles Deployment targets depend on the population number of registered cars and the level of motorization According to the law by the end of 2020 there must be 1000 publicly available electric car charging stations available in cities with more than 1 million inhabitants where at least 600000 motor vehicles have been registered and where the motorization level is at least 700 motor vehicles per 1000 inhabitants The number of envisaged public charging stations gradually decreases to 60 in cities with more than 100000 inhabitants at least 60000 vehicles on the roads and at least 400 vehicles per 1000 inhabitants Apart from city targets the legislation also considers the provision of charging infrastructure on main transit routes without specifying target figures

Charging infrastructure promotion (nationallocal)As part of the incentive schemes for BEVs introduced by the Polish government at the end of June 2020 aid is also provided for installing charging infrastructure when purchasing or leasing a new car Businesses purchasing or leasing a zero-emission van under the national eVAN support program can receive 50 of the eligible costs at a maximum aid of PLN 5000 (euro1200) for a charging point up to 22 kW Micro small and medium-sized businesses purchasing or leasing a passenger car as part of the Koliber program can claim 20 of the eligible cost for a charging point up to 22 kW but no more than PLN 25000 (euro5800)67

Outside of national funding for charging points in the business and workplace context there are no specific schemes targeting public and private charging options On a local level there are also no support programs offered by the authorities at current

Electric vehicle ready building codes (nationallocal)According to the Law on Electromobility parking spaces in all newly built public and multi-family buildings shall be equipped with electrical wiring for charging capacities of at least 37 kW This applies to new developments in municipalities with over 100000 inhabitants where more than 60000 vehicles are registered and where the motorization rate is at least 400 cars per 1000 inhabitants Beyond the Law on Electromobility there are currently no implementation provisions which specify the share or number of parking spaces to be equipped A draft ordinance by the Minister of Energy published in May 2019 suggests for public buildings a minimum connection capacity of 20 of the planned number of parking spaces and 37 kW For multi-family buildings the minimum connection capacity is 100 of the planned number of parking spaces and 37 kilowatts kW68 The draft regulation is still in consultation

Beyond the national regulations there are no specific or additional local-level laws

66 Federal Ministry of Transport and Digital Infrastructure ldquoFunding guideline for charging infrastructure for electric vehiclesrdquo (2020) httpswwwbmvideSharedDocsDEArtikelGfoerderrichtlinie-ladeinfrastruktur-elektrofahrzeugehtml

67 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo

68 Minister of Energy Projekt z dnia 25 kwietnia 2019 r Rozporządzenie Ministra Energii z dnia hellip w sprawie sposobu ustalania mocy przyłączeniowej dla wewnętrznych i zewnętrznych stanowisk postojowych związanych z budynkami użyteczności publicznej oraz budynkami mieszkalnymi wielorodzinnymi (Draft of 25 April 2019 Management Minister of Energy from the day on the method of determining the connection capacity for internal and external parking spaces related to public buildings and multi-family residential buildings) (25 April 2019) httpslegislacjarclgovpldocs567123217531259125812591259dokument394845pdf

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 4: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

4 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

0lt0202-0505-075075-1gt1

Metropolitanregions

2019 passenger carsElectric vehicle share

WrocławWrocław

ŁoacutedźŁoacutedź

SzczecinSzczecinSzczecin

PoznańPoznańPoznań

KaliskiKaliskiKaliski

WrocławCzęstochowaCzęstochowaCzęstochowa

Łoacutedź

KielceKielceKielce

LublinLublinLublin

BiałystokBiałystokBiałystok

WarsawWarsawWarsaw

KrakoacutewKrakoacutewKrakoacutew

RzeszoacutewRzeszoacutewRzeszoacutew

Bydgoszcz-ToruńBydgoszcz-ToruńBydgoszcz-Toruń

OlsztynOlsztynOlsztyn

KatowiceKatowiceKatowiceTarnoacutewTarnoacutewTarnoacutew

RadomRadomRadom

OpoleOpoleOpole

Bielsko-BiałaBielsko-BiałaBielsko-Biała

GdańskGdańskGdańsk

Figure 2 2019 registration share of electric passenger cars in Poland by NUTS 3 regions Map adapted from Dale Hall Sandra Wappelhorst Peter Mock and Nic Lutsey European electric vehicle factbook (ICCT Washington DC 2020) httpstheicctorgpublicationseuropean-electric-vehicle-factbook-20192020

The majority of new electric passenger cars were registered in the capital city of Warsaw (1300) accounting for the second-highest share in Poland with 10 The city of Szczecin recorded the highest share at 11 but represented a significantly smaller market with only about 100 new electric cars registered throughout 2019 The subregions with the third- and fourth-highest shares were outside the metropolitan regions The subregion of Wrocław adjacent to the city of Wrocław and home of the production plant of the battery cell manufacturer LG Chem accounted for a 09 share and the subregion of Kaliski north east of Wrocław had a share of 06

Poland recorded a positive trend in BEV and PHEV adoption over the past months (Figure 3) By the end of 2019 there were over 8600 electric passenger cars on Polandrsquos roads At the end of June 2020 the number was almost 1230015 Since July 2019 the electric passenger car stock in Poland showed a slow but steady increase This increase slowed to +4 in April 2020 compared to +9 in March likely as the result of the COVID-19 outbreak but recovered slightly in May and June with an increase of +5 each compared to the previous month While PHEVs recorded the highest uptakes in February and March of +11 and +13 respectively the development for BEVs was more balanced with the highest increase of +6 in both January and March 2020 compared to the electric passenger car stock of the previous month However in comparison to larger electric vehicle markets stock figures are still at a very low level In Germany for instance the electric passenger car stock accounted for almost 240000 vehicles by the end of 2019 more than 27-times higher than Poland16 On a per capita basis there were

15 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) ldquoE-mobility indexrdquo (21 July 2020) httpswwwpzpmorgplenAutomotive-marketE-mobility-indexYear-2020E-mobility-index-June-20202

16 Kraftfahrt-Bundesamt Annual balance ndash vehicle stock (2020) httpswwwkbadeDEStatistikFahrzeugeBestandJahresbilanzb_jahresbilanz_inhalthtmlnn=2601598

5 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

02 electric passenger cars per 1000 inhabitants in Poland compared to 3 electric cars per 1000 inhabitants in Germany

0

2000

4000

6000

8000

10000

12000

14000

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Ele

ctri

c p

asse

nger

car

sto

ck

Plug-inhybridelectricvehicles

Batteryelectricvehicles

Figure 3 Development of electric passenger car stock in Poland between July 2019 and June 2020

To create demand for electric vehicles and drive their uptake a certain number of models on the market is crucial17 In 2019 new registrations of passenger cars in Poland included eight different battery electric and 14 plug-in hybrid models only taking into account those models with at least 20 registrations The top three favorable BEV models were the BMW i3 the Nissan Leaf and the Hyundai Kona For PHEVs the Mini Countryman the BMW 530 and the Kia Optima accounted for the largest registration shares among all new electric passenger car registrations In comparison consumers in Germany registered about 30 different BEV and almost 40 PHEV models in 201918

In parallel with the increasing number of electric passenger cars in Poland the public charging infrastructure network has been continuously extended The number of charging stations increased between July 2019 and June 2020 from almost 800 to about 1200 (Figure 4)19 The majority of charging stations (67) were alternating current (AC) compared to 33 being direct current (DC) charging stations The number of AC charging stations experienced the highest increase in August 2019 (+16) while DC charging stations increased by +7 in January 2020 By the end of June 2020 drivers of an electric vehicle had access to over 2200 public charging points an electric vehicle to charging point ratio of 51 more favorable than the ratio of around 101 recommended by the European Commission in 2014 as part of the Alternative Fuels Infrastructure Directive20 By the end of June 2020 64 of the public charging points were Type 1 (up to 74 kW AC) and Type 2 (up to 43 kW AC) 15 CHAdeMO (up to 50 kW ACDC) 14 CCS (up to 50 kW ACDC) and 7 Tesla Supercharger charging points

17 Peter Slowik and Nic Lutsey The continued transition to electric vehicles in US cities (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsTransition_EV_US_Cities_20180724pdf

18 Dale Hall Sandra Wappelhorst Peter Mock and Nic Lutsey European electric vehicle factbook (ICCT Washington DC 2020) httpstheicctorgpublicationseuropean-electric-vehicle-factbook-20192020

19 Polski Związek Przemysłu Motoryzacyjnego ldquoE-mobility indexrdquo20 Official Journal of the European Union Directive 201494EU of the European Parliament and of the Council

of 22 October 2014 on the deployment of alternative fuels infrastructure (22 October 2014) httpseur-lexeuropaeulegal-contentENTXTuri=celex3A32014L0094

6 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

0

200

400

600

800

1000

1200

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Cha

rgin

g s

tati

ons

in o

per

atio

n

DCchargingstations

ACchargingstations

Figure 4 Charging stations in operation in Poland between July 2019 and June 2020

Most of the public charging infrastructure network has been rolled out in major cities By the end of June 2020 there were almost 150 charging stations available in Warsaw followed by Katowice (over 70) Krakoacutew Gdańsk and Wrocław with about 50 charging stations each and Poznań (almost 40)21

Policies driving the electric passenger car market The Polish national government has adopted a variety of policies to drive the electrification of its vehicle fleet At local levels authorities are increasingly using their power to spur electric vehicle adoption yet with different approaches22 The following section gives an overview of these developments and future plans with focus on the passenger car market Despite many actions at local levels we focus on policies adapted in the cities of Krakoacutew Poznań Szczecin Warsaw and Wrocław which recorded the highest electric vehicle uptakes in 2019 The majority or 68 of all new electric passenger cars were registered in these five cities in 2019

Electric vehicle goals (nationallocal)The Polish government has set ambitious targets for the adoption of electric vehicles In 2016 the government announced a goal to have 1 million electric vehicles on its roads by 2025 The ldquoStrategy for Sustainable Transport Development until 2030rdquo from September 2019 altered this plan stating that ldquothe number of electric and hybrid cars could reach 600000 by 2030rdquo23 As outlined in the strategy the goal encompasses BEVs PHEVs FCEVs and hybrid electric vehicles (HEVs) In the short-term the government aims to have 50000 electric vehicles on the roads of the 32 Polish agglomerations by the end

21 Polski Związek Przemysłu Motoryzacyjnego ldquoE-mobility indexrdquo22 Monika Helak ldquoRanking elektromobilnych miast Jak polskie samorządy wprowadzają e-rewolucję

w transporcie (Ranking of electromobility cities How do Polish local governments introduce the e-revolution in transport)rdquo (Polityka Insight November 2019) httpswwwpolitykainsightplen_resourcemultimedium20182683

23 Ministry of Infrastructure ldquoStrategy for Sustainable Transport Development until 2030rdquo (24 September 2019) httpswwwgovplwebinfrastrukturaprojekt-strategii-zrownowazonego-rozwoju-transportu-do-2030-roku2

7 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

of 2020 as identified in the National Framework for Alternative Fuels Infrastructure Development Policy24

At the city level Warsaw has pledged to make a major area of its city zero emission by 2030 The city is part of the global C40 network and is one of 35 cities which signed the Fossil Fuel Free Streets Declaration pledging to reduce the number of polluting vehicles on streets and a transitioning away from vehicles powered by fossil fuels25

Electric vehicle strategic and legal framework Over the past years the Polish government has published and adopted a number of strategic plans and legal frameworks and provided funding to support the uptake of electric vehicles in the country

raquo In March 2017 the government adopted the Electromobility Development Plan which provides a strategy for electric vehicle and charging infrastructure deployment in Poland with the aim to improve air quality and foster economic growth26

raquo In the same month the government adopted the National Framework for Alternative Fuels Infrastructure Development Policy in order to implement EU Directive 201494 on the deployment of alternative fuels infrastructure The framework includes the goal to install 6400 charging points including 400 fast charging points on the Trans-European Transport Network (TEN-T) by 202027

raquo The Law on Electromobility and Alternative Fuels came into force in February 2018 and is the first legislation on electromobility in Poland It lists detailed targets and measures for the uptake of electric vehicles by public institutions including public transportation vehicles and charging infrastructure in most populated cities (over 100000 inhabitants)28

raquo In June 2018 the Law on Biocomponents and Liquid Biofuels was amended and introduced the Low Emission Transport Fund to promote the development of alternative fueled vehicles29 In July 2019 the management of the Fund was entrusted to the National Fund for Environmental Protection and Water Management which took on the task of funding the electrification of Polandrsquos vehicle fleet30

At local levels the government with co-funding from the EU is supporting the efforts of municipalities to grow the electrification of its fleets For example within the national program GEPARD II funding is provided for over 200 local governments to develop electromobility strategies31

24 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

25 C40 Cities Climate Leadership Group Our Commitment to Green and Healthy Streets Fossil Fuel Free Streets Declaration (accessed 29 April 2020) httpswwwc40orgothergreen-and-healthy-streets

26 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo 27 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo28 Kancelaria Sejmu (Chancellery of the Seym) Ustawa z dnia 11 stycznia 2018 r o elektromobilności i paliwach

alternatywnych [Law of 11 January 2018 on electromobility and alternative fuels] (2018) httpprawosejmgovplisapnsfdownloadxspWDU20180000317TD20180317Lpdf

29 Ministry of Climate Low Emission Transport Fund (nd) httpswwwgovplwebklimatfundusz-niskoemisyjnego-transportu

30 Kancelaria Sejmu Dz U 2019 poz 1527 USTAWA z dnia 19 lipca 2019 r o zmianie ustawy o biokomponentach i biopaliwach ciekłych oraz niektoacuterych innych ustaw [Dz Laws of 2019 item 1527 LAW of 19 July 2019 on amending the act on biocomponents and liquid biofuels and some other acts) (July 2019) httpsisapsejmgovplisapnsfdownloadxspWDU20190001527TD20191527Lpdffbclid=IwAR3vV4S81Y_kMoEKtR75PC-yC0eKGY2FRWLiH9rlu6aNSNPf2_na8yAXsbY

31 National Fund for Environmental Protection and Water Management ldquoGEPARD II - low-emission transport Part 2 Strategy for electromobility developmentrdquo (2020) httpnfosigwgovploferta-finansowaniasrodki-krajoweprogramy-priorytetowegepard-ii--transport-niskoemisyjny-czesc-2informacje-o-naborze-

8 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

BEV and PHEV purchase incentives (national)To address the cost gap between electric and conventional cars the Polish government launched three incentive schemes in June 2020 for the purchase of a new electric vehicle not previously registered32 One incentive scheme called ldquoGreen Carrdquo is targeted at private individuals and supports the purchase of a new purely electric (BEV or FCEV) car The aid covers 15 of the purchase price with a maximum amount of PLN 18750 (euro4400) and is capped at a gross purchase price of PLN 125000 (euro29000) Another program ldquoeVANrdquo provides one-time incentives up to PLN 70000 (euro16000) for businesses purchasing or leasing a zero-emission delivery van The third program under the name ldquoKoliberrdquo benefits micro small and medium-sized businesses and targets zero-emission passenger transport The purchase or lease of an electric car is supported with up to PLN 25000 (euro6000) The budget secured by the government for all three programs will allow the co-financing of about 4000 electric cars and vans All programs are aimed at the purchases of new BEVs rather than PHEVs

Electric vehicle registration tax benefit (national)In Poland taxes and fees apply when purchasing or registering a car for the first time This includes one-time payments such as value added tax (VAT) a registration fee and excise duty VAT accounts for 23 of the vehiclersquos price without exemptions for electric cars A registration tax is not imposed when registering a vehicle for the first time Only a registration fee and a fee for an identification card is necessary totalling about euro60 without benefits for purchasers of an electric car When registering a new or used imported passenger car in Poland for the first time an excise tax of 31 of a vehiclersquos net value is imposed if the engine capacity is up to 2000 cm3 and 186 is imposed for cars above 2000 cm3 33 The Law on Electromobility and Alternative Fuels suggests exemptions on excise taxes for electric passenger cars (BEVs PHEVs) FCEVs hybrid vehicles (HEVs) and mild hybrid electric vehicles (MHEVs) The excise tax is waived for zero-emission electric cars (BEVs FCEVs) without a defined timeframe In contrast for PHEVs the excise duty waiver is valid until February 2021 under current plans34 As an example The purchaser of a gasoline Volkswagen Golf with an engine capacity of 1498 cm3 has to pay excise duty of euro500 compared to almost euro600 for a diesel model (1968 cm3) Yet for a vehicle with a higher engine capacity ie above the threshold of 2000 cm3 one-time payments could reach several thousands of euros For a diesel Mercedes X-class sport utility vehicle with an engine displacement of 2298 cm3 the one-time excise duty would be more than euro5500 However for most brands sold in Europe the average engine displacement of new passenger cars has been below 2000 cm3 over the past 20 years35

Electric vehicle usage tax benefit (national)Unlike most countries in Europe the Polish government does not impose periodical ownership taxes for owning a car36 instead choosing to levy taxes on the fuel or electricity used to power the vehicle For Euro-Super 95 and diesel the tax share in

32 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo (25 June 2020) httpwwwnfosigwgovplo-nfosigwaktualnosciart1603nfosigw-dofinansuje-zakup-pojazdow-elektrycznychhtml

33 Kancelaria Sejmu Ustawa z dnia 6 grudnia 2008 r o podatku akcyzowym (Act of 6 December 2008 on excise duty) (8 May 2020) httpisapsejmgovplisapnsfdownloadxspWDU20090030011UD20090011Ljpdf

34 Ministry of State Assets ldquoExemption from excise duty on electric hybrid and hydrogen powered vehicles is not public aidrdquo (14 January 2019) httpswwwgovplwebaktywa-panstwowezwolnienie-z-podatku-akcyzowego-od-pojazdow-elektrycznych-hybrydowych-i-napedzanych-wodorem-nie-jest-pomoca-publiczna1fbclid=IwAR0CC5RiRfpWIUfyeuqlNR8vrg5m1oPNSjulnQLa8EgccyEnD65-kAWjeCg

35 Peter Mock ed European vehicle market statistics 20192020 (ICCT Washington DC 2019) httpstheicctorgpublicationseuropean-vehicle-market-statistics-20192020

36 ACEA ndash European Automobile Manufacturerrsquos Association ldquo2020 ACEA Tax Guiderdquo (2020) httpsaceabeuploadsnews_documentsACEA_Tax_Guide_2020pdf

9 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

the end consumer price was 58 and 54 respectively in July 202037 Taxes on fuels in Poland consist of a 23 VAT an excise tax of PLN 1520 (euro035) per 1000 liters for gasoline fuel and PLN 1151 (euro027) for diesel fuel and a fuel tax The fuel tax rates are PLN 15549 (euro36) for 1000 liters of gasoline and PLN 32334 (euro75) per 1000 liters of diesel38 In 2019 an emission surcharge of PLN 80 (euro19) per 1000 liters fuel (gasoline and diesel) was introduced to finance among others the development of electromobility in Poland39 In terms of electricity costs for charging an electric car households consuming between 5000 and 15000 kWh electricity per year paid about 18 tax on the end consumer price based on average prices for the second half of 201940

Excursus Effects of incentives and tax breaks on vehicle costsFigure 5 shows the effects of taxes tax breaks and one-time purchase incentives on the total cost of ownership for newly purchased cars For comparison we choose the gasoline and diesel versions of the Volkswagen Golf the best-selling passenger car model in the EU41 and the battery electric Nissan Leaf one of the few BEVs available in Poland that is eligible for a bonus The costs are shown over a period of 4 years discounted at 6 for annual cost components and assume private holders similar to previous studies42 In the absence of registration and ownership taxes the cost comparison includes the one-time costs of car purchase (base price VAT excise duty registration fee) and fuel costs differentiated by pre-tax and taxed price Information on fuel consumption is based on the New European Driving Cycle (NEDC) To reflect vehicle real-world consumption for fuel cost calculation we apply an adjustment factor of 137 for gasoline cars and 145 for diesel to the NEDC fuel consumption and energy consumption values43 Fuel prices as of July 6 202044 were used and electricity prices for household consumers with a consumption between 5000 and 15000 kWh were applied based on average prices in Poland in the second half of 2019 and the assumption that private holders charge their electric car at home45 Due to lack of data on average distance travelled in Poland per year we assume 13000 km46

37 European Commission Total taxation share in the end consumer price for Euro-Super 95 and diesel oil (25 May 2020) httpeceuropaeuenergymapsmaps_weekly_oil_bulletinlatest_taxation_oil_pricespdf

38 Minister Infrastruktury ldquoObwieszczenie ministra Infrastruktury z dnia 25 lutego 2020 r zmieniające obwieszczenie w sprawie wysokości stawki opłaty paliwowej na rok 2020 (Notice infrastructure minister of February 25 2020 amending the notice on the amount of the fuel surcharge rate for 2020)rdquo (25 February 2020) httpisapsejmgovplisapnsfdownloadxspWMP20200000211OM20200211pdf

39 Kancelaria Sejmu ldquoUSTAWA z dnia 27 kwietnia 2001 r Prawo ochrony środowiska (ACT of 27 April 2001 Environmental Protection Law)rdquo (27 April 2020) httpisapsejmgovplisapnsfdownloadxspWDU20010620627UD20010627Ljpdf

40 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

41 Peter Mock European vehicle market statistics 20192020 42 Sandra Wappelhorst Peter Mock ed and Zifei Yang Using vehicle taxation policy to lower transport emissions

An overview for passenger cars in Europe (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsEU_vehicle_taxation_Report_20181214_0pdf

43 Uwe Tietge Sonsoles Diacuteaz Peter Mock John German Anup Bandivadekar and Norbert Ligterink From laboratory to road ndash A 2016 update of official and lsquoreal-worldrsquo fuel consumption and CO2 values for passenger cars in Europe (ICCT Washington DC 2016) httpswwwtheicctorgsitesdefaultfilespublicationsICCT_LaboratoryToRoad_2016pdf

44 EC ndash European Commission Weekly Oil Bulletin (2020) httpseceuropaeuenergydata-analysisweekly-oil-bulletin_enredir=1

45 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

46 ACEA ndash European Automobile Manufacturerrsquos Association ldquoACEA Report Vehicles in use Europe 2018rdquo (2018) httpswwwaceabeuploadsstatistic_documentsACEA_Report_Vehicles_in_use-Europe_2018pdf

10 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

euro0

euro5000

euro10000

euro15000

euro20000

euro25000

euro30000

euro35000

4-y

ear

cons

umer

ow

ners

hip

co

sts

Bonus

Fuelelectricity (tax)

Fuelelectricity (pre-tax)

Registration fee

Excise duty

Value added tax

Base price

4-year costs

GasolineVolkswagen Golf

(110 kW 1498 cm3)

DieselVolkswagen Golf

(110 kW 1968 cm3)

BEVNissan Leaf

(110 kW 0 cm3)

euro4100

Figure 5 Comparison of 4-year consumer ownership costs for a gasoline and diesel Volkswagen Golf and BEV Nissan Leaf

Based on these assumptions comparing the conventional Volkswagen Golf models with the electric Nissan Leaf shows that the newly introduced bonus payment on car purchase brings the 4-year cost down by about euro4100 or 15 of the gross purchase price for the Nissan Leaf Yet even with the bonus included the Nissan Leaf still has a euro3000 cost disadvantage over the gasoline Volkswagen Golf Over a holding period of 4 years the cost disadvantage remains yet at a smaller level at over euro1000 The reduction is the result of the euro500 excise tax on gasoline and lower electricity costs of about euro1500 over 4 years compared to 4-year gasoline fuel costs of more than euro3000 In contrast compared to the Volkswagen Golf diesel the Nissan Leaf bears almost identical purchase costs and has a cost advantage of euro2000 over four years again due to the one-time bonus and advantages on excise tax and fuel costs

Electric vehicle company car benefit for employers and employees (national)In the end of 2019 only 32 of electric cars in Poland were owned by private individuals The majority of electric cars (68) were owned by businesses47 Of these leasing companies accounted for 50 carsharing companies for 18 and car dealers for 10 The remaining 22 accounted for manufacturer importers car rental companies and others The Law on Electromobility includes specific tax incentives for electric company cars This involves longer depreciation write-offs compared to conventional cars for companies purchasing a vehicle Under the current policy the maximum passenger car value that can be deducted if a company car is used for business purposes is PLN 150000 (euro35000) for combustion engine and hybrid cars For electric cars the amount is significantly higher at PLN 225000 (euro52000)48 In contrast to electric company cars only used for business purposes there are currently no special provisions for employees privately using an electric company car

Electric vehicle parking benefit The Electromobility Law exempts BEV drivers from parking fees in paid public parking zones The city of Szczecin already introduced preferential parking fees for

47 Krzyczkowska Zuzanna ldquoThere are already 10000 electric cars on Polish roads When will there be a millionrdquo Motopl 14 January 2020 httpsmotoplMotoPL78838925597232na-polskich-drogach-jest-juz-10-tysiecy-samochodow-elektrycznychhtml

48 PwC Doing business in Poland 2019 (2019) httpswwwpwcplplpdfdoing-bussiness-in-poland-2019pdf

11 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

low-emission vehicles in 2014 allowing owners of an electric or hybrid car emitting up to 100 g CO2km to buy a 12-month subscription for parking in the inner-city paid parking zone for PLN 10 (euro200)49 Reduced parking fees in other cities range from PLN 2 (euro050) per hour in the city of Wrocław50 to euro5 for 3-hour parking in Poznań51 Some cities also offer reduced parking fees for PHEVs such as the cities of Krakoacutew52 and Poznań53

Electric vehicle access benefit (national) According to the Electromobility Law local governments must allow BEV drivers access to bus lanes although cities can enact requirements on minimum occupancy to limit this access In addition the law gives local authorities a legal basis to implement clean transport zones (CTZs) allowing access to electric vehicles (BEVs FCEVs) and gas-powered vehicles (CNGs LPGs) only Despite the exclusion of PHEVs by definition municipalities can expand the catalogue of allowed vehicles to include PHEVs According to the law a CTZ can also only be established in city centers of cities with more than 100000 inhabitants A monetary penalty on non-compliant vehicles can be imposed and used for the purpose of marking the CTZs purchasing of zero-emission buses and covering the costs of performing analyses The maximum penalty for non-compliant vehicles cannot exceed PLN 250 PLN (euro050) per hour according to the law54 However the current regulations are too vague to be implemented by the municipalities and the government is therefore working on changing and specifying these regulations55 To date a CTZ has only been introduced in Krakoacutew starting in January 2019 However due to appeals of business owners living within the zone almost all constraints for combustion-engine vehicles in the zone have been abolished56 The city of Poznań performed a public consultation about the development of electromobility in the city between April and May 2020 including proposals for the introduction of a CTZ57

Electric vehicle charging benefit (local)In Poland no city offers a comprehensive network of free charging options for electric vehicles at city owned or managed public parking spaces Yet this policy is a common measure in the early electric vehicle transition stage in cities outside Poland such as

49 City Council of Szczecin ldquoCity Council of Szczecin of 26 May 2014 on the announcement of the consolidated text of the resolution on the establishment of a paid parking zone fees for parking vehicles on the public roads of the City of Szczecin and the way of collecting themrdquo (26 May 2014) httpssppszczecinplplikiuchwala-jtpdf

50 Wroclaw Paid parking zone (23 July 2019) httpswwwwroclawplenpaid-parking-zone 51 Telewizja ldquoThe last day of cheap parking in Poznanrdquo (29 May 2020) httpspoznantvppl48288715ostatni-

dzien-taniego-parkowania-w-poznaniu 52 Dziennik Urzędowy Wojewoacutedztwa Małopolskiego [Official journal province of Malopolska] Uchwala Nr

XXII45619 Rady Miasta Krakowa z dnia 17 lipca 2019 roku w sprawie zmiany uchwały Nr LXXXIX217717 Rady Miasta Krakowa z dnia 22 listopada 2017 r w sprawie ustalenia strefy płatnego parkowania ustalenia opłat za postoacutej pojazdoacutew samochodowych na drogach publicznych w strefie płatnego parkowania wprowadzenia opłaty abonamentowej dla niektoacuterych użytkownikoacutew droacuteg oraz sposobu pobierania tych opłat [Resolution No XXII45619 KRAKOW City Council of 17 July 2019 on the amendment of Resolution No LXXXIX217717 of the Krakow City Council of 22 November 2017 on the establishment of a paid parking zone the establishment of parking fees for motor vehicles on public roads in the paid parking zone the introduction of a subscription fee for certain road users and the method of collecting these fees] (17 July 2019) httpmikrakowplpdfakty-prawneuchwala-nr-xxii45619pdf

53 Telewizja ldquoThe last day of cheap parking in Poznanrdquo54 Law of 11 January 2018 on Electromobility and Alternative Fuels version from May 22 2020 Journal of Laws

httpssiplexplakty-prawnedzu-dziennik-ustawelektromobilnosc-i-paliwa-alternatywne-18683445 55 Łukasz Dubiński ldquoClean transport zones (administrative and legal analysis)rdquo (3 July 2019) httpswwwcirepl

item182937200000strefy-czystego-transportu-analiza-administracyjno-prawnahtml56 Municipal Krakow ABC of clean transport zone in Kazimierz (19 February 2019) httpswwwkrakowplaktual

nosci22658529komunikatabc_strefy_czystego_transportu_na_kazimierzuhtml Municipal Krakow ldquoWhat is left of the Clean Transport Zone in Kazimierzrdquo (6 March 2019) httpswww krakowplaktualnosci22793526komunikatco_zostalo_ze_strefy_czystego_transportu_na_kazimierzuhtml

57 Poznan City Hall ldquoPublic consultation on the draft Strategy for Electromobility Development for the City of Poznań until 2035 - INTERNET CONSULTATIONrdquo (2020) httpswwwpoznanplmimkonsultujemykonsultacje-spoleczne-dotyczace-strategii-rozwoju-elektromobilnosci-dla-miasta-poznania-do-roku-2035-konsultacje-internetowep381173812552515html

12 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Oslo and Paris58 There are selected programs such as in Warsaw where drivers of an electric vehicle can charge their car for free in one out of five assigned car parks if the driver possesses an ECO card59 An increasing number of retailers are also offering free charging at semi-public spaces

Public electric vehicle procurement (nationallocal)The Law on Electromobility also sets fleet and procurement targets for electric vehicles For the central administrationrsquos car fleet which includes government ministries at least 10 of the fleet is required to be comprised of electric vehicles from 2022 and at least 20 electric vehicles are required from 2023 The target for the share of electric vehicles in the fleets of local administrations with more than 50000 inhabitants is 10 by 2022 In addition the law sets targets for other vehicles in addition to passenger cars For example the target for zero-emission buses is 5 by 2021 10 by 2023 and 20 by 2025 in cities with more than 50000 inhabitants

To reach these targets local governments across Poland are beginning to introduce electric vehicles to their municipal fleets In terms of passenger cars the city council of Warsaw opened a tender in late 2019 to lease the first 16 electric cars for its municipal fleet60 In mid-2019 the city council of Wrocław added eight electric cars to its municipal fleet61 Krakoacutew ordered 47 electric cars in the end of 2019 which will be rented over a three year period62 The city of Poznań tested three electric and natural gas vehicles in early 202063 The municipal of Szczecin had just over 10 electric cars in its fleet in mid-201964

Policies driving charging infrastructure deployment Building the necessary charging infrastructure increasing consumerrsquos accessibility and addressing potential barriers is crucial in the transition to electric vehicles This includes public charging as well as the possibility to charge an electric car at home or at workplaces

Charging infrastructure goals (national)The National Framework for Alternative Fuels Infrastructure Development Policy includes a target of 6000 publicly accessible normal charging points and 400 fast charging points by the end of 202065 which is likely to be delayed by one year due to the impacts of the COVID-19 pandemic In comparison the German government has

58 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsEV_city_policies_white_paper_fv_20200224pdf

59 City Warsaw P+R car parks (21 May 2020) httpswarszawa19115pl-parkingi-p-r 60 Editorial Office in Warsaw ldquoTown hall invests in electric cars Officials will drive them for 5 yearsrdquo (12 January

2020) httpswarszawanaszemiastoplratusz-inwestuje-w-samochody-elektryczne-urzednicy-bedaarc1-7501377

61 Janusz Krzeszowski ldquoEco-friendly Nissan will replace the most worn-out combustion cars in the officerdquo (30 May 2019) httpswwwwroclawplsrodowiskoekologiczne-nissany-auta-elektryczne-w-urzedzie-miejskim-wroclawia

62 Wojciech Kwinta ldquoThe first electric cars for Krakow municipal institutions are already hererdquo inzynieriacom 3 November 2019 httpsinzynieriacomenergetykawiadomosci56970pierwsze-samochody-elektryczne-dla-krakowskich-instytucji-miejskich-juz-sa

63 Poznan City Hall ldquoThe city of Poznań is testing electric carsrdquo (3 February 2020) httpswwwpoznanplmiminfonewsmiasto-poznan-testuje-elektryczne-samochody143016html

64 Marcin Gigiel ldquoPresident Krzystek will use a company electric carrdquo (19 April 2019) httpswszczecinieplaktualnosciprezydent_krzystek_bedzie_korzystal_ze_sluzbowego_samochodu_elektrycznegoid-31640html

65 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

13 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

been funding the deployment of publicly accessible charging stations over the past years with the aim to install at least 15000 by the end of 202066

The Law on Electromobility also specifies goals for the roll-out of the alternative-fuels infrastructure in cities including charging stations for electric vehicles Deployment targets depend on the population number of registered cars and the level of motorization According to the law by the end of 2020 there must be 1000 publicly available electric car charging stations available in cities with more than 1 million inhabitants where at least 600000 motor vehicles have been registered and where the motorization level is at least 700 motor vehicles per 1000 inhabitants The number of envisaged public charging stations gradually decreases to 60 in cities with more than 100000 inhabitants at least 60000 vehicles on the roads and at least 400 vehicles per 1000 inhabitants Apart from city targets the legislation also considers the provision of charging infrastructure on main transit routes without specifying target figures

Charging infrastructure promotion (nationallocal)As part of the incentive schemes for BEVs introduced by the Polish government at the end of June 2020 aid is also provided for installing charging infrastructure when purchasing or leasing a new car Businesses purchasing or leasing a zero-emission van under the national eVAN support program can receive 50 of the eligible costs at a maximum aid of PLN 5000 (euro1200) for a charging point up to 22 kW Micro small and medium-sized businesses purchasing or leasing a passenger car as part of the Koliber program can claim 20 of the eligible cost for a charging point up to 22 kW but no more than PLN 25000 (euro5800)67

Outside of national funding for charging points in the business and workplace context there are no specific schemes targeting public and private charging options On a local level there are also no support programs offered by the authorities at current

Electric vehicle ready building codes (nationallocal)According to the Law on Electromobility parking spaces in all newly built public and multi-family buildings shall be equipped with electrical wiring for charging capacities of at least 37 kW This applies to new developments in municipalities with over 100000 inhabitants where more than 60000 vehicles are registered and where the motorization rate is at least 400 cars per 1000 inhabitants Beyond the Law on Electromobility there are currently no implementation provisions which specify the share or number of parking spaces to be equipped A draft ordinance by the Minister of Energy published in May 2019 suggests for public buildings a minimum connection capacity of 20 of the planned number of parking spaces and 37 kW For multi-family buildings the minimum connection capacity is 100 of the planned number of parking spaces and 37 kilowatts kW68 The draft regulation is still in consultation

Beyond the national regulations there are no specific or additional local-level laws

66 Federal Ministry of Transport and Digital Infrastructure ldquoFunding guideline for charging infrastructure for electric vehiclesrdquo (2020) httpswwwbmvideSharedDocsDEArtikelGfoerderrichtlinie-ladeinfrastruktur-elektrofahrzeugehtml

67 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo

68 Minister of Energy Projekt z dnia 25 kwietnia 2019 r Rozporządzenie Ministra Energii z dnia hellip w sprawie sposobu ustalania mocy przyłączeniowej dla wewnętrznych i zewnętrznych stanowisk postojowych związanych z budynkami użyteczności publicznej oraz budynkami mieszkalnymi wielorodzinnymi (Draft of 25 April 2019 Management Minister of Energy from the day on the method of determining the connection capacity for internal and external parking spaces related to public buildings and multi-family residential buildings) (25 April 2019) httpslegislacjarclgovpldocs567123217531259125812591259dokument394845pdf

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 5: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

5 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

02 electric passenger cars per 1000 inhabitants in Poland compared to 3 electric cars per 1000 inhabitants in Germany

0

2000

4000

6000

8000

10000

12000

14000

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Ele

ctri

c p

asse

nger

car

sto

ck

Plug-inhybridelectricvehicles

Batteryelectricvehicles

Figure 3 Development of electric passenger car stock in Poland between July 2019 and June 2020

To create demand for electric vehicles and drive their uptake a certain number of models on the market is crucial17 In 2019 new registrations of passenger cars in Poland included eight different battery electric and 14 plug-in hybrid models only taking into account those models with at least 20 registrations The top three favorable BEV models were the BMW i3 the Nissan Leaf and the Hyundai Kona For PHEVs the Mini Countryman the BMW 530 and the Kia Optima accounted for the largest registration shares among all new electric passenger car registrations In comparison consumers in Germany registered about 30 different BEV and almost 40 PHEV models in 201918

In parallel with the increasing number of electric passenger cars in Poland the public charging infrastructure network has been continuously extended The number of charging stations increased between July 2019 and June 2020 from almost 800 to about 1200 (Figure 4)19 The majority of charging stations (67) were alternating current (AC) compared to 33 being direct current (DC) charging stations The number of AC charging stations experienced the highest increase in August 2019 (+16) while DC charging stations increased by +7 in January 2020 By the end of June 2020 drivers of an electric vehicle had access to over 2200 public charging points an electric vehicle to charging point ratio of 51 more favorable than the ratio of around 101 recommended by the European Commission in 2014 as part of the Alternative Fuels Infrastructure Directive20 By the end of June 2020 64 of the public charging points were Type 1 (up to 74 kW AC) and Type 2 (up to 43 kW AC) 15 CHAdeMO (up to 50 kW ACDC) 14 CCS (up to 50 kW ACDC) and 7 Tesla Supercharger charging points

17 Peter Slowik and Nic Lutsey The continued transition to electric vehicles in US cities (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsTransition_EV_US_Cities_20180724pdf

18 Dale Hall Sandra Wappelhorst Peter Mock and Nic Lutsey European electric vehicle factbook (ICCT Washington DC 2020) httpstheicctorgpublicationseuropean-electric-vehicle-factbook-20192020

19 Polski Związek Przemysłu Motoryzacyjnego ldquoE-mobility indexrdquo20 Official Journal of the European Union Directive 201494EU of the European Parliament and of the Council

of 22 October 2014 on the deployment of alternative fuels infrastructure (22 October 2014) httpseur-lexeuropaeulegal-contentENTXTuri=celex3A32014L0094

6 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

0

200

400

600

800

1000

1200

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Cha

rgin

g s

tati

ons

in o

per

atio

n

DCchargingstations

ACchargingstations

Figure 4 Charging stations in operation in Poland between July 2019 and June 2020

Most of the public charging infrastructure network has been rolled out in major cities By the end of June 2020 there were almost 150 charging stations available in Warsaw followed by Katowice (over 70) Krakoacutew Gdańsk and Wrocław with about 50 charging stations each and Poznań (almost 40)21

Policies driving the electric passenger car market The Polish national government has adopted a variety of policies to drive the electrification of its vehicle fleet At local levels authorities are increasingly using their power to spur electric vehicle adoption yet with different approaches22 The following section gives an overview of these developments and future plans with focus on the passenger car market Despite many actions at local levels we focus on policies adapted in the cities of Krakoacutew Poznań Szczecin Warsaw and Wrocław which recorded the highest electric vehicle uptakes in 2019 The majority or 68 of all new electric passenger cars were registered in these five cities in 2019

Electric vehicle goals (nationallocal)The Polish government has set ambitious targets for the adoption of electric vehicles In 2016 the government announced a goal to have 1 million electric vehicles on its roads by 2025 The ldquoStrategy for Sustainable Transport Development until 2030rdquo from September 2019 altered this plan stating that ldquothe number of electric and hybrid cars could reach 600000 by 2030rdquo23 As outlined in the strategy the goal encompasses BEVs PHEVs FCEVs and hybrid electric vehicles (HEVs) In the short-term the government aims to have 50000 electric vehicles on the roads of the 32 Polish agglomerations by the end

21 Polski Związek Przemysłu Motoryzacyjnego ldquoE-mobility indexrdquo22 Monika Helak ldquoRanking elektromobilnych miast Jak polskie samorządy wprowadzają e-rewolucję

w transporcie (Ranking of electromobility cities How do Polish local governments introduce the e-revolution in transport)rdquo (Polityka Insight November 2019) httpswwwpolitykainsightplen_resourcemultimedium20182683

23 Ministry of Infrastructure ldquoStrategy for Sustainable Transport Development until 2030rdquo (24 September 2019) httpswwwgovplwebinfrastrukturaprojekt-strategii-zrownowazonego-rozwoju-transportu-do-2030-roku2

7 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

of 2020 as identified in the National Framework for Alternative Fuels Infrastructure Development Policy24

At the city level Warsaw has pledged to make a major area of its city zero emission by 2030 The city is part of the global C40 network and is one of 35 cities which signed the Fossil Fuel Free Streets Declaration pledging to reduce the number of polluting vehicles on streets and a transitioning away from vehicles powered by fossil fuels25

Electric vehicle strategic and legal framework Over the past years the Polish government has published and adopted a number of strategic plans and legal frameworks and provided funding to support the uptake of electric vehicles in the country

raquo In March 2017 the government adopted the Electromobility Development Plan which provides a strategy for electric vehicle and charging infrastructure deployment in Poland with the aim to improve air quality and foster economic growth26

raquo In the same month the government adopted the National Framework for Alternative Fuels Infrastructure Development Policy in order to implement EU Directive 201494 on the deployment of alternative fuels infrastructure The framework includes the goal to install 6400 charging points including 400 fast charging points on the Trans-European Transport Network (TEN-T) by 202027

raquo The Law on Electromobility and Alternative Fuels came into force in February 2018 and is the first legislation on electromobility in Poland It lists detailed targets and measures for the uptake of electric vehicles by public institutions including public transportation vehicles and charging infrastructure in most populated cities (over 100000 inhabitants)28

raquo In June 2018 the Law on Biocomponents and Liquid Biofuels was amended and introduced the Low Emission Transport Fund to promote the development of alternative fueled vehicles29 In July 2019 the management of the Fund was entrusted to the National Fund for Environmental Protection and Water Management which took on the task of funding the electrification of Polandrsquos vehicle fleet30

At local levels the government with co-funding from the EU is supporting the efforts of municipalities to grow the electrification of its fleets For example within the national program GEPARD II funding is provided for over 200 local governments to develop electromobility strategies31

24 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

25 C40 Cities Climate Leadership Group Our Commitment to Green and Healthy Streets Fossil Fuel Free Streets Declaration (accessed 29 April 2020) httpswwwc40orgothergreen-and-healthy-streets

26 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo 27 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo28 Kancelaria Sejmu (Chancellery of the Seym) Ustawa z dnia 11 stycznia 2018 r o elektromobilności i paliwach

alternatywnych [Law of 11 January 2018 on electromobility and alternative fuels] (2018) httpprawosejmgovplisapnsfdownloadxspWDU20180000317TD20180317Lpdf

29 Ministry of Climate Low Emission Transport Fund (nd) httpswwwgovplwebklimatfundusz-niskoemisyjnego-transportu

30 Kancelaria Sejmu Dz U 2019 poz 1527 USTAWA z dnia 19 lipca 2019 r o zmianie ustawy o biokomponentach i biopaliwach ciekłych oraz niektoacuterych innych ustaw [Dz Laws of 2019 item 1527 LAW of 19 July 2019 on amending the act on biocomponents and liquid biofuels and some other acts) (July 2019) httpsisapsejmgovplisapnsfdownloadxspWDU20190001527TD20191527Lpdffbclid=IwAR3vV4S81Y_kMoEKtR75PC-yC0eKGY2FRWLiH9rlu6aNSNPf2_na8yAXsbY

31 National Fund for Environmental Protection and Water Management ldquoGEPARD II - low-emission transport Part 2 Strategy for electromobility developmentrdquo (2020) httpnfosigwgovploferta-finansowaniasrodki-krajoweprogramy-priorytetowegepard-ii--transport-niskoemisyjny-czesc-2informacje-o-naborze-

8 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

BEV and PHEV purchase incentives (national)To address the cost gap between electric and conventional cars the Polish government launched three incentive schemes in June 2020 for the purchase of a new electric vehicle not previously registered32 One incentive scheme called ldquoGreen Carrdquo is targeted at private individuals and supports the purchase of a new purely electric (BEV or FCEV) car The aid covers 15 of the purchase price with a maximum amount of PLN 18750 (euro4400) and is capped at a gross purchase price of PLN 125000 (euro29000) Another program ldquoeVANrdquo provides one-time incentives up to PLN 70000 (euro16000) for businesses purchasing or leasing a zero-emission delivery van The third program under the name ldquoKoliberrdquo benefits micro small and medium-sized businesses and targets zero-emission passenger transport The purchase or lease of an electric car is supported with up to PLN 25000 (euro6000) The budget secured by the government for all three programs will allow the co-financing of about 4000 electric cars and vans All programs are aimed at the purchases of new BEVs rather than PHEVs

Electric vehicle registration tax benefit (national)In Poland taxes and fees apply when purchasing or registering a car for the first time This includes one-time payments such as value added tax (VAT) a registration fee and excise duty VAT accounts for 23 of the vehiclersquos price without exemptions for electric cars A registration tax is not imposed when registering a vehicle for the first time Only a registration fee and a fee for an identification card is necessary totalling about euro60 without benefits for purchasers of an electric car When registering a new or used imported passenger car in Poland for the first time an excise tax of 31 of a vehiclersquos net value is imposed if the engine capacity is up to 2000 cm3 and 186 is imposed for cars above 2000 cm3 33 The Law on Electromobility and Alternative Fuels suggests exemptions on excise taxes for electric passenger cars (BEVs PHEVs) FCEVs hybrid vehicles (HEVs) and mild hybrid electric vehicles (MHEVs) The excise tax is waived for zero-emission electric cars (BEVs FCEVs) without a defined timeframe In contrast for PHEVs the excise duty waiver is valid until February 2021 under current plans34 As an example The purchaser of a gasoline Volkswagen Golf with an engine capacity of 1498 cm3 has to pay excise duty of euro500 compared to almost euro600 for a diesel model (1968 cm3) Yet for a vehicle with a higher engine capacity ie above the threshold of 2000 cm3 one-time payments could reach several thousands of euros For a diesel Mercedes X-class sport utility vehicle with an engine displacement of 2298 cm3 the one-time excise duty would be more than euro5500 However for most brands sold in Europe the average engine displacement of new passenger cars has been below 2000 cm3 over the past 20 years35

Electric vehicle usage tax benefit (national)Unlike most countries in Europe the Polish government does not impose periodical ownership taxes for owning a car36 instead choosing to levy taxes on the fuel or electricity used to power the vehicle For Euro-Super 95 and diesel the tax share in

32 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo (25 June 2020) httpwwwnfosigwgovplo-nfosigwaktualnosciart1603nfosigw-dofinansuje-zakup-pojazdow-elektrycznychhtml

33 Kancelaria Sejmu Ustawa z dnia 6 grudnia 2008 r o podatku akcyzowym (Act of 6 December 2008 on excise duty) (8 May 2020) httpisapsejmgovplisapnsfdownloadxspWDU20090030011UD20090011Ljpdf

34 Ministry of State Assets ldquoExemption from excise duty on electric hybrid and hydrogen powered vehicles is not public aidrdquo (14 January 2019) httpswwwgovplwebaktywa-panstwowezwolnienie-z-podatku-akcyzowego-od-pojazdow-elektrycznych-hybrydowych-i-napedzanych-wodorem-nie-jest-pomoca-publiczna1fbclid=IwAR0CC5RiRfpWIUfyeuqlNR8vrg5m1oPNSjulnQLa8EgccyEnD65-kAWjeCg

35 Peter Mock ed European vehicle market statistics 20192020 (ICCT Washington DC 2019) httpstheicctorgpublicationseuropean-vehicle-market-statistics-20192020

36 ACEA ndash European Automobile Manufacturerrsquos Association ldquo2020 ACEA Tax Guiderdquo (2020) httpsaceabeuploadsnews_documentsACEA_Tax_Guide_2020pdf

9 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

the end consumer price was 58 and 54 respectively in July 202037 Taxes on fuels in Poland consist of a 23 VAT an excise tax of PLN 1520 (euro035) per 1000 liters for gasoline fuel and PLN 1151 (euro027) for diesel fuel and a fuel tax The fuel tax rates are PLN 15549 (euro36) for 1000 liters of gasoline and PLN 32334 (euro75) per 1000 liters of diesel38 In 2019 an emission surcharge of PLN 80 (euro19) per 1000 liters fuel (gasoline and diesel) was introduced to finance among others the development of electromobility in Poland39 In terms of electricity costs for charging an electric car households consuming between 5000 and 15000 kWh electricity per year paid about 18 tax on the end consumer price based on average prices for the second half of 201940

Excursus Effects of incentives and tax breaks on vehicle costsFigure 5 shows the effects of taxes tax breaks and one-time purchase incentives on the total cost of ownership for newly purchased cars For comparison we choose the gasoline and diesel versions of the Volkswagen Golf the best-selling passenger car model in the EU41 and the battery electric Nissan Leaf one of the few BEVs available in Poland that is eligible for a bonus The costs are shown over a period of 4 years discounted at 6 for annual cost components and assume private holders similar to previous studies42 In the absence of registration and ownership taxes the cost comparison includes the one-time costs of car purchase (base price VAT excise duty registration fee) and fuel costs differentiated by pre-tax and taxed price Information on fuel consumption is based on the New European Driving Cycle (NEDC) To reflect vehicle real-world consumption for fuel cost calculation we apply an adjustment factor of 137 for gasoline cars and 145 for diesel to the NEDC fuel consumption and energy consumption values43 Fuel prices as of July 6 202044 were used and electricity prices for household consumers with a consumption between 5000 and 15000 kWh were applied based on average prices in Poland in the second half of 2019 and the assumption that private holders charge their electric car at home45 Due to lack of data on average distance travelled in Poland per year we assume 13000 km46

37 European Commission Total taxation share in the end consumer price for Euro-Super 95 and diesel oil (25 May 2020) httpeceuropaeuenergymapsmaps_weekly_oil_bulletinlatest_taxation_oil_pricespdf

38 Minister Infrastruktury ldquoObwieszczenie ministra Infrastruktury z dnia 25 lutego 2020 r zmieniające obwieszczenie w sprawie wysokości stawki opłaty paliwowej na rok 2020 (Notice infrastructure minister of February 25 2020 amending the notice on the amount of the fuel surcharge rate for 2020)rdquo (25 February 2020) httpisapsejmgovplisapnsfdownloadxspWMP20200000211OM20200211pdf

39 Kancelaria Sejmu ldquoUSTAWA z dnia 27 kwietnia 2001 r Prawo ochrony środowiska (ACT of 27 April 2001 Environmental Protection Law)rdquo (27 April 2020) httpisapsejmgovplisapnsfdownloadxspWDU20010620627UD20010627Ljpdf

40 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

41 Peter Mock European vehicle market statistics 20192020 42 Sandra Wappelhorst Peter Mock ed and Zifei Yang Using vehicle taxation policy to lower transport emissions

An overview for passenger cars in Europe (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsEU_vehicle_taxation_Report_20181214_0pdf

43 Uwe Tietge Sonsoles Diacuteaz Peter Mock John German Anup Bandivadekar and Norbert Ligterink From laboratory to road ndash A 2016 update of official and lsquoreal-worldrsquo fuel consumption and CO2 values for passenger cars in Europe (ICCT Washington DC 2016) httpswwwtheicctorgsitesdefaultfilespublicationsICCT_LaboratoryToRoad_2016pdf

44 EC ndash European Commission Weekly Oil Bulletin (2020) httpseceuropaeuenergydata-analysisweekly-oil-bulletin_enredir=1

45 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

46 ACEA ndash European Automobile Manufacturerrsquos Association ldquoACEA Report Vehicles in use Europe 2018rdquo (2018) httpswwwaceabeuploadsstatistic_documentsACEA_Report_Vehicles_in_use-Europe_2018pdf

10 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

euro0

euro5000

euro10000

euro15000

euro20000

euro25000

euro30000

euro35000

4-y

ear

cons

umer

ow

ners

hip

co

sts

Bonus

Fuelelectricity (tax)

Fuelelectricity (pre-tax)

Registration fee

Excise duty

Value added tax

Base price

4-year costs

GasolineVolkswagen Golf

(110 kW 1498 cm3)

DieselVolkswagen Golf

(110 kW 1968 cm3)

BEVNissan Leaf

(110 kW 0 cm3)

euro4100

Figure 5 Comparison of 4-year consumer ownership costs for a gasoline and diesel Volkswagen Golf and BEV Nissan Leaf

Based on these assumptions comparing the conventional Volkswagen Golf models with the electric Nissan Leaf shows that the newly introduced bonus payment on car purchase brings the 4-year cost down by about euro4100 or 15 of the gross purchase price for the Nissan Leaf Yet even with the bonus included the Nissan Leaf still has a euro3000 cost disadvantage over the gasoline Volkswagen Golf Over a holding period of 4 years the cost disadvantage remains yet at a smaller level at over euro1000 The reduction is the result of the euro500 excise tax on gasoline and lower electricity costs of about euro1500 over 4 years compared to 4-year gasoline fuel costs of more than euro3000 In contrast compared to the Volkswagen Golf diesel the Nissan Leaf bears almost identical purchase costs and has a cost advantage of euro2000 over four years again due to the one-time bonus and advantages on excise tax and fuel costs

Electric vehicle company car benefit for employers and employees (national)In the end of 2019 only 32 of electric cars in Poland were owned by private individuals The majority of electric cars (68) were owned by businesses47 Of these leasing companies accounted for 50 carsharing companies for 18 and car dealers for 10 The remaining 22 accounted for manufacturer importers car rental companies and others The Law on Electromobility includes specific tax incentives for electric company cars This involves longer depreciation write-offs compared to conventional cars for companies purchasing a vehicle Under the current policy the maximum passenger car value that can be deducted if a company car is used for business purposes is PLN 150000 (euro35000) for combustion engine and hybrid cars For electric cars the amount is significantly higher at PLN 225000 (euro52000)48 In contrast to electric company cars only used for business purposes there are currently no special provisions for employees privately using an electric company car

Electric vehicle parking benefit The Electromobility Law exempts BEV drivers from parking fees in paid public parking zones The city of Szczecin already introduced preferential parking fees for

47 Krzyczkowska Zuzanna ldquoThere are already 10000 electric cars on Polish roads When will there be a millionrdquo Motopl 14 January 2020 httpsmotoplMotoPL78838925597232na-polskich-drogach-jest-juz-10-tysiecy-samochodow-elektrycznychhtml

48 PwC Doing business in Poland 2019 (2019) httpswwwpwcplplpdfdoing-bussiness-in-poland-2019pdf

11 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

low-emission vehicles in 2014 allowing owners of an electric or hybrid car emitting up to 100 g CO2km to buy a 12-month subscription for parking in the inner-city paid parking zone for PLN 10 (euro200)49 Reduced parking fees in other cities range from PLN 2 (euro050) per hour in the city of Wrocław50 to euro5 for 3-hour parking in Poznań51 Some cities also offer reduced parking fees for PHEVs such as the cities of Krakoacutew52 and Poznań53

Electric vehicle access benefit (national) According to the Electromobility Law local governments must allow BEV drivers access to bus lanes although cities can enact requirements on minimum occupancy to limit this access In addition the law gives local authorities a legal basis to implement clean transport zones (CTZs) allowing access to electric vehicles (BEVs FCEVs) and gas-powered vehicles (CNGs LPGs) only Despite the exclusion of PHEVs by definition municipalities can expand the catalogue of allowed vehicles to include PHEVs According to the law a CTZ can also only be established in city centers of cities with more than 100000 inhabitants A monetary penalty on non-compliant vehicles can be imposed and used for the purpose of marking the CTZs purchasing of zero-emission buses and covering the costs of performing analyses The maximum penalty for non-compliant vehicles cannot exceed PLN 250 PLN (euro050) per hour according to the law54 However the current regulations are too vague to be implemented by the municipalities and the government is therefore working on changing and specifying these regulations55 To date a CTZ has only been introduced in Krakoacutew starting in January 2019 However due to appeals of business owners living within the zone almost all constraints for combustion-engine vehicles in the zone have been abolished56 The city of Poznań performed a public consultation about the development of electromobility in the city between April and May 2020 including proposals for the introduction of a CTZ57

Electric vehicle charging benefit (local)In Poland no city offers a comprehensive network of free charging options for electric vehicles at city owned or managed public parking spaces Yet this policy is a common measure in the early electric vehicle transition stage in cities outside Poland such as

49 City Council of Szczecin ldquoCity Council of Szczecin of 26 May 2014 on the announcement of the consolidated text of the resolution on the establishment of a paid parking zone fees for parking vehicles on the public roads of the City of Szczecin and the way of collecting themrdquo (26 May 2014) httpssppszczecinplplikiuchwala-jtpdf

50 Wroclaw Paid parking zone (23 July 2019) httpswwwwroclawplenpaid-parking-zone 51 Telewizja ldquoThe last day of cheap parking in Poznanrdquo (29 May 2020) httpspoznantvppl48288715ostatni-

dzien-taniego-parkowania-w-poznaniu 52 Dziennik Urzędowy Wojewoacutedztwa Małopolskiego [Official journal province of Malopolska] Uchwala Nr

XXII45619 Rady Miasta Krakowa z dnia 17 lipca 2019 roku w sprawie zmiany uchwały Nr LXXXIX217717 Rady Miasta Krakowa z dnia 22 listopada 2017 r w sprawie ustalenia strefy płatnego parkowania ustalenia opłat za postoacutej pojazdoacutew samochodowych na drogach publicznych w strefie płatnego parkowania wprowadzenia opłaty abonamentowej dla niektoacuterych użytkownikoacutew droacuteg oraz sposobu pobierania tych opłat [Resolution No XXII45619 KRAKOW City Council of 17 July 2019 on the amendment of Resolution No LXXXIX217717 of the Krakow City Council of 22 November 2017 on the establishment of a paid parking zone the establishment of parking fees for motor vehicles on public roads in the paid parking zone the introduction of a subscription fee for certain road users and the method of collecting these fees] (17 July 2019) httpmikrakowplpdfakty-prawneuchwala-nr-xxii45619pdf

53 Telewizja ldquoThe last day of cheap parking in Poznanrdquo54 Law of 11 January 2018 on Electromobility and Alternative Fuels version from May 22 2020 Journal of Laws

httpssiplexplakty-prawnedzu-dziennik-ustawelektromobilnosc-i-paliwa-alternatywne-18683445 55 Łukasz Dubiński ldquoClean transport zones (administrative and legal analysis)rdquo (3 July 2019) httpswwwcirepl

item182937200000strefy-czystego-transportu-analiza-administracyjno-prawnahtml56 Municipal Krakow ABC of clean transport zone in Kazimierz (19 February 2019) httpswwwkrakowplaktual

nosci22658529komunikatabc_strefy_czystego_transportu_na_kazimierzuhtml Municipal Krakow ldquoWhat is left of the Clean Transport Zone in Kazimierzrdquo (6 March 2019) httpswww krakowplaktualnosci22793526komunikatco_zostalo_ze_strefy_czystego_transportu_na_kazimierzuhtml

57 Poznan City Hall ldquoPublic consultation on the draft Strategy for Electromobility Development for the City of Poznań until 2035 - INTERNET CONSULTATIONrdquo (2020) httpswwwpoznanplmimkonsultujemykonsultacje-spoleczne-dotyczace-strategii-rozwoju-elektromobilnosci-dla-miasta-poznania-do-roku-2035-konsultacje-internetowep381173812552515html

12 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Oslo and Paris58 There are selected programs such as in Warsaw where drivers of an electric vehicle can charge their car for free in one out of five assigned car parks if the driver possesses an ECO card59 An increasing number of retailers are also offering free charging at semi-public spaces

Public electric vehicle procurement (nationallocal)The Law on Electromobility also sets fleet and procurement targets for electric vehicles For the central administrationrsquos car fleet which includes government ministries at least 10 of the fleet is required to be comprised of electric vehicles from 2022 and at least 20 electric vehicles are required from 2023 The target for the share of electric vehicles in the fleets of local administrations with more than 50000 inhabitants is 10 by 2022 In addition the law sets targets for other vehicles in addition to passenger cars For example the target for zero-emission buses is 5 by 2021 10 by 2023 and 20 by 2025 in cities with more than 50000 inhabitants

To reach these targets local governments across Poland are beginning to introduce electric vehicles to their municipal fleets In terms of passenger cars the city council of Warsaw opened a tender in late 2019 to lease the first 16 electric cars for its municipal fleet60 In mid-2019 the city council of Wrocław added eight electric cars to its municipal fleet61 Krakoacutew ordered 47 electric cars in the end of 2019 which will be rented over a three year period62 The city of Poznań tested three electric and natural gas vehicles in early 202063 The municipal of Szczecin had just over 10 electric cars in its fleet in mid-201964

Policies driving charging infrastructure deployment Building the necessary charging infrastructure increasing consumerrsquos accessibility and addressing potential barriers is crucial in the transition to electric vehicles This includes public charging as well as the possibility to charge an electric car at home or at workplaces

Charging infrastructure goals (national)The National Framework for Alternative Fuels Infrastructure Development Policy includes a target of 6000 publicly accessible normal charging points and 400 fast charging points by the end of 202065 which is likely to be delayed by one year due to the impacts of the COVID-19 pandemic In comparison the German government has

58 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsEV_city_policies_white_paper_fv_20200224pdf

59 City Warsaw P+R car parks (21 May 2020) httpswarszawa19115pl-parkingi-p-r 60 Editorial Office in Warsaw ldquoTown hall invests in electric cars Officials will drive them for 5 yearsrdquo (12 January

2020) httpswarszawanaszemiastoplratusz-inwestuje-w-samochody-elektryczne-urzednicy-bedaarc1-7501377

61 Janusz Krzeszowski ldquoEco-friendly Nissan will replace the most worn-out combustion cars in the officerdquo (30 May 2019) httpswwwwroclawplsrodowiskoekologiczne-nissany-auta-elektryczne-w-urzedzie-miejskim-wroclawia

62 Wojciech Kwinta ldquoThe first electric cars for Krakow municipal institutions are already hererdquo inzynieriacom 3 November 2019 httpsinzynieriacomenergetykawiadomosci56970pierwsze-samochody-elektryczne-dla-krakowskich-instytucji-miejskich-juz-sa

63 Poznan City Hall ldquoThe city of Poznań is testing electric carsrdquo (3 February 2020) httpswwwpoznanplmiminfonewsmiasto-poznan-testuje-elektryczne-samochody143016html

64 Marcin Gigiel ldquoPresident Krzystek will use a company electric carrdquo (19 April 2019) httpswszczecinieplaktualnosciprezydent_krzystek_bedzie_korzystal_ze_sluzbowego_samochodu_elektrycznegoid-31640html

65 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

13 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

been funding the deployment of publicly accessible charging stations over the past years with the aim to install at least 15000 by the end of 202066

The Law on Electromobility also specifies goals for the roll-out of the alternative-fuels infrastructure in cities including charging stations for electric vehicles Deployment targets depend on the population number of registered cars and the level of motorization According to the law by the end of 2020 there must be 1000 publicly available electric car charging stations available in cities with more than 1 million inhabitants where at least 600000 motor vehicles have been registered and where the motorization level is at least 700 motor vehicles per 1000 inhabitants The number of envisaged public charging stations gradually decreases to 60 in cities with more than 100000 inhabitants at least 60000 vehicles on the roads and at least 400 vehicles per 1000 inhabitants Apart from city targets the legislation also considers the provision of charging infrastructure on main transit routes without specifying target figures

Charging infrastructure promotion (nationallocal)As part of the incentive schemes for BEVs introduced by the Polish government at the end of June 2020 aid is also provided for installing charging infrastructure when purchasing or leasing a new car Businesses purchasing or leasing a zero-emission van under the national eVAN support program can receive 50 of the eligible costs at a maximum aid of PLN 5000 (euro1200) for a charging point up to 22 kW Micro small and medium-sized businesses purchasing or leasing a passenger car as part of the Koliber program can claim 20 of the eligible cost for a charging point up to 22 kW but no more than PLN 25000 (euro5800)67

Outside of national funding for charging points in the business and workplace context there are no specific schemes targeting public and private charging options On a local level there are also no support programs offered by the authorities at current

Electric vehicle ready building codes (nationallocal)According to the Law on Electromobility parking spaces in all newly built public and multi-family buildings shall be equipped with electrical wiring for charging capacities of at least 37 kW This applies to new developments in municipalities with over 100000 inhabitants where more than 60000 vehicles are registered and where the motorization rate is at least 400 cars per 1000 inhabitants Beyond the Law on Electromobility there are currently no implementation provisions which specify the share or number of parking spaces to be equipped A draft ordinance by the Minister of Energy published in May 2019 suggests for public buildings a minimum connection capacity of 20 of the planned number of parking spaces and 37 kW For multi-family buildings the minimum connection capacity is 100 of the planned number of parking spaces and 37 kilowatts kW68 The draft regulation is still in consultation

Beyond the national regulations there are no specific or additional local-level laws

66 Federal Ministry of Transport and Digital Infrastructure ldquoFunding guideline for charging infrastructure for electric vehiclesrdquo (2020) httpswwwbmvideSharedDocsDEArtikelGfoerderrichtlinie-ladeinfrastruktur-elektrofahrzeugehtml

67 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo

68 Minister of Energy Projekt z dnia 25 kwietnia 2019 r Rozporządzenie Ministra Energii z dnia hellip w sprawie sposobu ustalania mocy przyłączeniowej dla wewnętrznych i zewnętrznych stanowisk postojowych związanych z budynkami użyteczności publicznej oraz budynkami mieszkalnymi wielorodzinnymi (Draft of 25 April 2019 Management Minister of Energy from the day on the method of determining the connection capacity for internal and external parking spaces related to public buildings and multi-family residential buildings) (25 April 2019) httpslegislacjarclgovpldocs567123217531259125812591259dokument394845pdf

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 6: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

6 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

0

200

400

600

800

1000

1200

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Cha

rgin

g s

tati

ons

in o

per

atio

n

DCchargingstations

ACchargingstations

Figure 4 Charging stations in operation in Poland between July 2019 and June 2020

Most of the public charging infrastructure network has been rolled out in major cities By the end of June 2020 there were almost 150 charging stations available in Warsaw followed by Katowice (over 70) Krakoacutew Gdańsk and Wrocław with about 50 charging stations each and Poznań (almost 40)21

Policies driving the electric passenger car market The Polish national government has adopted a variety of policies to drive the electrification of its vehicle fleet At local levels authorities are increasingly using their power to spur electric vehicle adoption yet with different approaches22 The following section gives an overview of these developments and future plans with focus on the passenger car market Despite many actions at local levels we focus on policies adapted in the cities of Krakoacutew Poznań Szczecin Warsaw and Wrocław which recorded the highest electric vehicle uptakes in 2019 The majority or 68 of all new electric passenger cars were registered in these five cities in 2019

Electric vehicle goals (nationallocal)The Polish government has set ambitious targets for the adoption of electric vehicles In 2016 the government announced a goal to have 1 million electric vehicles on its roads by 2025 The ldquoStrategy for Sustainable Transport Development until 2030rdquo from September 2019 altered this plan stating that ldquothe number of electric and hybrid cars could reach 600000 by 2030rdquo23 As outlined in the strategy the goal encompasses BEVs PHEVs FCEVs and hybrid electric vehicles (HEVs) In the short-term the government aims to have 50000 electric vehicles on the roads of the 32 Polish agglomerations by the end

21 Polski Związek Przemysłu Motoryzacyjnego ldquoE-mobility indexrdquo22 Monika Helak ldquoRanking elektromobilnych miast Jak polskie samorządy wprowadzają e-rewolucję

w transporcie (Ranking of electromobility cities How do Polish local governments introduce the e-revolution in transport)rdquo (Polityka Insight November 2019) httpswwwpolitykainsightplen_resourcemultimedium20182683

23 Ministry of Infrastructure ldquoStrategy for Sustainable Transport Development until 2030rdquo (24 September 2019) httpswwwgovplwebinfrastrukturaprojekt-strategii-zrownowazonego-rozwoju-transportu-do-2030-roku2

7 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

of 2020 as identified in the National Framework for Alternative Fuels Infrastructure Development Policy24

At the city level Warsaw has pledged to make a major area of its city zero emission by 2030 The city is part of the global C40 network and is one of 35 cities which signed the Fossil Fuel Free Streets Declaration pledging to reduce the number of polluting vehicles on streets and a transitioning away from vehicles powered by fossil fuels25

Electric vehicle strategic and legal framework Over the past years the Polish government has published and adopted a number of strategic plans and legal frameworks and provided funding to support the uptake of electric vehicles in the country

raquo In March 2017 the government adopted the Electromobility Development Plan which provides a strategy for electric vehicle and charging infrastructure deployment in Poland with the aim to improve air quality and foster economic growth26

raquo In the same month the government adopted the National Framework for Alternative Fuels Infrastructure Development Policy in order to implement EU Directive 201494 on the deployment of alternative fuels infrastructure The framework includes the goal to install 6400 charging points including 400 fast charging points on the Trans-European Transport Network (TEN-T) by 202027

raquo The Law on Electromobility and Alternative Fuels came into force in February 2018 and is the first legislation on electromobility in Poland It lists detailed targets and measures for the uptake of electric vehicles by public institutions including public transportation vehicles and charging infrastructure in most populated cities (over 100000 inhabitants)28

raquo In June 2018 the Law on Biocomponents and Liquid Biofuels was amended and introduced the Low Emission Transport Fund to promote the development of alternative fueled vehicles29 In July 2019 the management of the Fund was entrusted to the National Fund for Environmental Protection and Water Management which took on the task of funding the electrification of Polandrsquos vehicle fleet30

At local levels the government with co-funding from the EU is supporting the efforts of municipalities to grow the electrification of its fleets For example within the national program GEPARD II funding is provided for over 200 local governments to develop electromobility strategies31

24 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

25 C40 Cities Climate Leadership Group Our Commitment to Green and Healthy Streets Fossil Fuel Free Streets Declaration (accessed 29 April 2020) httpswwwc40orgothergreen-and-healthy-streets

26 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo 27 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo28 Kancelaria Sejmu (Chancellery of the Seym) Ustawa z dnia 11 stycznia 2018 r o elektromobilności i paliwach

alternatywnych [Law of 11 January 2018 on electromobility and alternative fuels] (2018) httpprawosejmgovplisapnsfdownloadxspWDU20180000317TD20180317Lpdf

29 Ministry of Climate Low Emission Transport Fund (nd) httpswwwgovplwebklimatfundusz-niskoemisyjnego-transportu

30 Kancelaria Sejmu Dz U 2019 poz 1527 USTAWA z dnia 19 lipca 2019 r o zmianie ustawy o biokomponentach i biopaliwach ciekłych oraz niektoacuterych innych ustaw [Dz Laws of 2019 item 1527 LAW of 19 July 2019 on amending the act on biocomponents and liquid biofuels and some other acts) (July 2019) httpsisapsejmgovplisapnsfdownloadxspWDU20190001527TD20191527Lpdffbclid=IwAR3vV4S81Y_kMoEKtR75PC-yC0eKGY2FRWLiH9rlu6aNSNPf2_na8yAXsbY

31 National Fund for Environmental Protection and Water Management ldquoGEPARD II - low-emission transport Part 2 Strategy for electromobility developmentrdquo (2020) httpnfosigwgovploferta-finansowaniasrodki-krajoweprogramy-priorytetowegepard-ii--transport-niskoemisyjny-czesc-2informacje-o-naborze-

8 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

BEV and PHEV purchase incentives (national)To address the cost gap between electric and conventional cars the Polish government launched three incentive schemes in June 2020 for the purchase of a new electric vehicle not previously registered32 One incentive scheme called ldquoGreen Carrdquo is targeted at private individuals and supports the purchase of a new purely electric (BEV or FCEV) car The aid covers 15 of the purchase price with a maximum amount of PLN 18750 (euro4400) and is capped at a gross purchase price of PLN 125000 (euro29000) Another program ldquoeVANrdquo provides one-time incentives up to PLN 70000 (euro16000) for businesses purchasing or leasing a zero-emission delivery van The third program under the name ldquoKoliberrdquo benefits micro small and medium-sized businesses and targets zero-emission passenger transport The purchase or lease of an electric car is supported with up to PLN 25000 (euro6000) The budget secured by the government for all three programs will allow the co-financing of about 4000 electric cars and vans All programs are aimed at the purchases of new BEVs rather than PHEVs

Electric vehicle registration tax benefit (national)In Poland taxes and fees apply when purchasing or registering a car for the first time This includes one-time payments such as value added tax (VAT) a registration fee and excise duty VAT accounts for 23 of the vehiclersquos price without exemptions for electric cars A registration tax is not imposed when registering a vehicle for the first time Only a registration fee and a fee for an identification card is necessary totalling about euro60 without benefits for purchasers of an electric car When registering a new or used imported passenger car in Poland for the first time an excise tax of 31 of a vehiclersquos net value is imposed if the engine capacity is up to 2000 cm3 and 186 is imposed for cars above 2000 cm3 33 The Law on Electromobility and Alternative Fuels suggests exemptions on excise taxes for electric passenger cars (BEVs PHEVs) FCEVs hybrid vehicles (HEVs) and mild hybrid electric vehicles (MHEVs) The excise tax is waived for zero-emission electric cars (BEVs FCEVs) without a defined timeframe In contrast for PHEVs the excise duty waiver is valid until February 2021 under current plans34 As an example The purchaser of a gasoline Volkswagen Golf with an engine capacity of 1498 cm3 has to pay excise duty of euro500 compared to almost euro600 for a diesel model (1968 cm3) Yet for a vehicle with a higher engine capacity ie above the threshold of 2000 cm3 one-time payments could reach several thousands of euros For a diesel Mercedes X-class sport utility vehicle with an engine displacement of 2298 cm3 the one-time excise duty would be more than euro5500 However for most brands sold in Europe the average engine displacement of new passenger cars has been below 2000 cm3 over the past 20 years35

Electric vehicle usage tax benefit (national)Unlike most countries in Europe the Polish government does not impose periodical ownership taxes for owning a car36 instead choosing to levy taxes on the fuel or electricity used to power the vehicle For Euro-Super 95 and diesel the tax share in

32 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo (25 June 2020) httpwwwnfosigwgovplo-nfosigwaktualnosciart1603nfosigw-dofinansuje-zakup-pojazdow-elektrycznychhtml

33 Kancelaria Sejmu Ustawa z dnia 6 grudnia 2008 r o podatku akcyzowym (Act of 6 December 2008 on excise duty) (8 May 2020) httpisapsejmgovplisapnsfdownloadxspWDU20090030011UD20090011Ljpdf

34 Ministry of State Assets ldquoExemption from excise duty on electric hybrid and hydrogen powered vehicles is not public aidrdquo (14 January 2019) httpswwwgovplwebaktywa-panstwowezwolnienie-z-podatku-akcyzowego-od-pojazdow-elektrycznych-hybrydowych-i-napedzanych-wodorem-nie-jest-pomoca-publiczna1fbclid=IwAR0CC5RiRfpWIUfyeuqlNR8vrg5m1oPNSjulnQLa8EgccyEnD65-kAWjeCg

35 Peter Mock ed European vehicle market statistics 20192020 (ICCT Washington DC 2019) httpstheicctorgpublicationseuropean-vehicle-market-statistics-20192020

36 ACEA ndash European Automobile Manufacturerrsquos Association ldquo2020 ACEA Tax Guiderdquo (2020) httpsaceabeuploadsnews_documentsACEA_Tax_Guide_2020pdf

9 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

the end consumer price was 58 and 54 respectively in July 202037 Taxes on fuels in Poland consist of a 23 VAT an excise tax of PLN 1520 (euro035) per 1000 liters for gasoline fuel and PLN 1151 (euro027) for diesel fuel and a fuel tax The fuel tax rates are PLN 15549 (euro36) for 1000 liters of gasoline and PLN 32334 (euro75) per 1000 liters of diesel38 In 2019 an emission surcharge of PLN 80 (euro19) per 1000 liters fuel (gasoline and diesel) was introduced to finance among others the development of electromobility in Poland39 In terms of electricity costs for charging an electric car households consuming between 5000 and 15000 kWh electricity per year paid about 18 tax on the end consumer price based on average prices for the second half of 201940

Excursus Effects of incentives and tax breaks on vehicle costsFigure 5 shows the effects of taxes tax breaks and one-time purchase incentives on the total cost of ownership for newly purchased cars For comparison we choose the gasoline and diesel versions of the Volkswagen Golf the best-selling passenger car model in the EU41 and the battery electric Nissan Leaf one of the few BEVs available in Poland that is eligible for a bonus The costs are shown over a period of 4 years discounted at 6 for annual cost components and assume private holders similar to previous studies42 In the absence of registration and ownership taxes the cost comparison includes the one-time costs of car purchase (base price VAT excise duty registration fee) and fuel costs differentiated by pre-tax and taxed price Information on fuel consumption is based on the New European Driving Cycle (NEDC) To reflect vehicle real-world consumption for fuel cost calculation we apply an adjustment factor of 137 for gasoline cars and 145 for diesel to the NEDC fuel consumption and energy consumption values43 Fuel prices as of July 6 202044 were used and electricity prices for household consumers with a consumption between 5000 and 15000 kWh were applied based on average prices in Poland in the second half of 2019 and the assumption that private holders charge their electric car at home45 Due to lack of data on average distance travelled in Poland per year we assume 13000 km46

37 European Commission Total taxation share in the end consumer price for Euro-Super 95 and diesel oil (25 May 2020) httpeceuropaeuenergymapsmaps_weekly_oil_bulletinlatest_taxation_oil_pricespdf

38 Minister Infrastruktury ldquoObwieszczenie ministra Infrastruktury z dnia 25 lutego 2020 r zmieniające obwieszczenie w sprawie wysokości stawki opłaty paliwowej na rok 2020 (Notice infrastructure minister of February 25 2020 amending the notice on the amount of the fuel surcharge rate for 2020)rdquo (25 February 2020) httpisapsejmgovplisapnsfdownloadxspWMP20200000211OM20200211pdf

39 Kancelaria Sejmu ldquoUSTAWA z dnia 27 kwietnia 2001 r Prawo ochrony środowiska (ACT of 27 April 2001 Environmental Protection Law)rdquo (27 April 2020) httpisapsejmgovplisapnsfdownloadxspWDU20010620627UD20010627Ljpdf

40 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

41 Peter Mock European vehicle market statistics 20192020 42 Sandra Wappelhorst Peter Mock ed and Zifei Yang Using vehicle taxation policy to lower transport emissions

An overview for passenger cars in Europe (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsEU_vehicle_taxation_Report_20181214_0pdf

43 Uwe Tietge Sonsoles Diacuteaz Peter Mock John German Anup Bandivadekar and Norbert Ligterink From laboratory to road ndash A 2016 update of official and lsquoreal-worldrsquo fuel consumption and CO2 values for passenger cars in Europe (ICCT Washington DC 2016) httpswwwtheicctorgsitesdefaultfilespublicationsICCT_LaboratoryToRoad_2016pdf

44 EC ndash European Commission Weekly Oil Bulletin (2020) httpseceuropaeuenergydata-analysisweekly-oil-bulletin_enredir=1

45 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

46 ACEA ndash European Automobile Manufacturerrsquos Association ldquoACEA Report Vehicles in use Europe 2018rdquo (2018) httpswwwaceabeuploadsstatistic_documentsACEA_Report_Vehicles_in_use-Europe_2018pdf

10 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

euro0

euro5000

euro10000

euro15000

euro20000

euro25000

euro30000

euro35000

4-y

ear

cons

umer

ow

ners

hip

co

sts

Bonus

Fuelelectricity (tax)

Fuelelectricity (pre-tax)

Registration fee

Excise duty

Value added tax

Base price

4-year costs

GasolineVolkswagen Golf

(110 kW 1498 cm3)

DieselVolkswagen Golf

(110 kW 1968 cm3)

BEVNissan Leaf

(110 kW 0 cm3)

euro4100

Figure 5 Comparison of 4-year consumer ownership costs for a gasoline and diesel Volkswagen Golf and BEV Nissan Leaf

Based on these assumptions comparing the conventional Volkswagen Golf models with the electric Nissan Leaf shows that the newly introduced bonus payment on car purchase brings the 4-year cost down by about euro4100 or 15 of the gross purchase price for the Nissan Leaf Yet even with the bonus included the Nissan Leaf still has a euro3000 cost disadvantage over the gasoline Volkswagen Golf Over a holding period of 4 years the cost disadvantage remains yet at a smaller level at over euro1000 The reduction is the result of the euro500 excise tax on gasoline and lower electricity costs of about euro1500 over 4 years compared to 4-year gasoline fuel costs of more than euro3000 In contrast compared to the Volkswagen Golf diesel the Nissan Leaf bears almost identical purchase costs and has a cost advantage of euro2000 over four years again due to the one-time bonus and advantages on excise tax and fuel costs

Electric vehicle company car benefit for employers and employees (national)In the end of 2019 only 32 of electric cars in Poland were owned by private individuals The majority of electric cars (68) were owned by businesses47 Of these leasing companies accounted for 50 carsharing companies for 18 and car dealers for 10 The remaining 22 accounted for manufacturer importers car rental companies and others The Law on Electromobility includes specific tax incentives for electric company cars This involves longer depreciation write-offs compared to conventional cars for companies purchasing a vehicle Under the current policy the maximum passenger car value that can be deducted if a company car is used for business purposes is PLN 150000 (euro35000) for combustion engine and hybrid cars For electric cars the amount is significantly higher at PLN 225000 (euro52000)48 In contrast to electric company cars only used for business purposes there are currently no special provisions for employees privately using an electric company car

Electric vehicle parking benefit The Electromobility Law exempts BEV drivers from parking fees in paid public parking zones The city of Szczecin already introduced preferential parking fees for

47 Krzyczkowska Zuzanna ldquoThere are already 10000 electric cars on Polish roads When will there be a millionrdquo Motopl 14 January 2020 httpsmotoplMotoPL78838925597232na-polskich-drogach-jest-juz-10-tysiecy-samochodow-elektrycznychhtml

48 PwC Doing business in Poland 2019 (2019) httpswwwpwcplplpdfdoing-bussiness-in-poland-2019pdf

11 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

low-emission vehicles in 2014 allowing owners of an electric or hybrid car emitting up to 100 g CO2km to buy a 12-month subscription for parking in the inner-city paid parking zone for PLN 10 (euro200)49 Reduced parking fees in other cities range from PLN 2 (euro050) per hour in the city of Wrocław50 to euro5 for 3-hour parking in Poznań51 Some cities also offer reduced parking fees for PHEVs such as the cities of Krakoacutew52 and Poznań53

Electric vehicle access benefit (national) According to the Electromobility Law local governments must allow BEV drivers access to bus lanes although cities can enact requirements on minimum occupancy to limit this access In addition the law gives local authorities a legal basis to implement clean transport zones (CTZs) allowing access to electric vehicles (BEVs FCEVs) and gas-powered vehicles (CNGs LPGs) only Despite the exclusion of PHEVs by definition municipalities can expand the catalogue of allowed vehicles to include PHEVs According to the law a CTZ can also only be established in city centers of cities with more than 100000 inhabitants A monetary penalty on non-compliant vehicles can be imposed and used for the purpose of marking the CTZs purchasing of zero-emission buses and covering the costs of performing analyses The maximum penalty for non-compliant vehicles cannot exceed PLN 250 PLN (euro050) per hour according to the law54 However the current regulations are too vague to be implemented by the municipalities and the government is therefore working on changing and specifying these regulations55 To date a CTZ has only been introduced in Krakoacutew starting in January 2019 However due to appeals of business owners living within the zone almost all constraints for combustion-engine vehicles in the zone have been abolished56 The city of Poznań performed a public consultation about the development of electromobility in the city between April and May 2020 including proposals for the introduction of a CTZ57

Electric vehicle charging benefit (local)In Poland no city offers a comprehensive network of free charging options for electric vehicles at city owned or managed public parking spaces Yet this policy is a common measure in the early electric vehicle transition stage in cities outside Poland such as

49 City Council of Szczecin ldquoCity Council of Szczecin of 26 May 2014 on the announcement of the consolidated text of the resolution on the establishment of a paid parking zone fees for parking vehicles on the public roads of the City of Szczecin and the way of collecting themrdquo (26 May 2014) httpssppszczecinplplikiuchwala-jtpdf

50 Wroclaw Paid parking zone (23 July 2019) httpswwwwroclawplenpaid-parking-zone 51 Telewizja ldquoThe last day of cheap parking in Poznanrdquo (29 May 2020) httpspoznantvppl48288715ostatni-

dzien-taniego-parkowania-w-poznaniu 52 Dziennik Urzędowy Wojewoacutedztwa Małopolskiego [Official journal province of Malopolska] Uchwala Nr

XXII45619 Rady Miasta Krakowa z dnia 17 lipca 2019 roku w sprawie zmiany uchwały Nr LXXXIX217717 Rady Miasta Krakowa z dnia 22 listopada 2017 r w sprawie ustalenia strefy płatnego parkowania ustalenia opłat za postoacutej pojazdoacutew samochodowych na drogach publicznych w strefie płatnego parkowania wprowadzenia opłaty abonamentowej dla niektoacuterych użytkownikoacutew droacuteg oraz sposobu pobierania tych opłat [Resolution No XXII45619 KRAKOW City Council of 17 July 2019 on the amendment of Resolution No LXXXIX217717 of the Krakow City Council of 22 November 2017 on the establishment of a paid parking zone the establishment of parking fees for motor vehicles on public roads in the paid parking zone the introduction of a subscription fee for certain road users and the method of collecting these fees] (17 July 2019) httpmikrakowplpdfakty-prawneuchwala-nr-xxii45619pdf

53 Telewizja ldquoThe last day of cheap parking in Poznanrdquo54 Law of 11 January 2018 on Electromobility and Alternative Fuels version from May 22 2020 Journal of Laws

httpssiplexplakty-prawnedzu-dziennik-ustawelektromobilnosc-i-paliwa-alternatywne-18683445 55 Łukasz Dubiński ldquoClean transport zones (administrative and legal analysis)rdquo (3 July 2019) httpswwwcirepl

item182937200000strefy-czystego-transportu-analiza-administracyjno-prawnahtml56 Municipal Krakow ABC of clean transport zone in Kazimierz (19 February 2019) httpswwwkrakowplaktual

nosci22658529komunikatabc_strefy_czystego_transportu_na_kazimierzuhtml Municipal Krakow ldquoWhat is left of the Clean Transport Zone in Kazimierzrdquo (6 March 2019) httpswww krakowplaktualnosci22793526komunikatco_zostalo_ze_strefy_czystego_transportu_na_kazimierzuhtml

57 Poznan City Hall ldquoPublic consultation on the draft Strategy for Electromobility Development for the City of Poznań until 2035 - INTERNET CONSULTATIONrdquo (2020) httpswwwpoznanplmimkonsultujemykonsultacje-spoleczne-dotyczace-strategii-rozwoju-elektromobilnosci-dla-miasta-poznania-do-roku-2035-konsultacje-internetowep381173812552515html

12 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Oslo and Paris58 There are selected programs such as in Warsaw where drivers of an electric vehicle can charge their car for free in one out of five assigned car parks if the driver possesses an ECO card59 An increasing number of retailers are also offering free charging at semi-public spaces

Public electric vehicle procurement (nationallocal)The Law on Electromobility also sets fleet and procurement targets for electric vehicles For the central administrationrsquos car fleet which includes government ministries at least 10 of the fleet is required to be comprised of electric vehicles from 2022 and at least 20 electric vehicles are required from 2023 The target for the share of electric vehicles in the fleets of local administrations with more than 50000 inhabitants is 10 by 2022 In addition the law sets targets for other vehicles in addition to passenger cars For example the target for zero-emission buses is 5 by 2021 10 by 2023 and 20 by 2025 in cities with more than 50000 inhabitants

To reach these targets local governments across Poland are beginning to introduce electric vehicles to their municipal fleets In terms of passenger cars the city council of Warsaw opened a tender in late 2019 to lease the first 16 electric cars for its municipal fleet60 In mid-2019 the city council of Wrocław added eight electric cars to its municipal fleet61 Krakoacutew ordered 47 electric cars in the end of 2019 which will be rented over a three year period62 The city of Poznań tested three electric and natural gas vehicles in early 202063 The municipal of Szczecin had just over 10 electric cars in its fleet in mid-201964

Policies driving charging infrastructure deployment Building the necessary charging infrastructure increasing consumerrsquos accessibility and addressing potential barriers is crucial in the transition to electric vehicles This includes public charging as well as the possibility to charge an electric car at home or at workplaces

Charging infrastructure goals (national)The National Framework for Alternative Fuels Infrastructure Development Policy includes a target of 6000 publicly accessible normal charging points and 400 fast charging points by the end of 202065 which is likely to be delayed by one year due to the impacts of the COVID-19 pandemic In comparison the German government has

58 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsEV_city_policies_white_paper_fv_20200224pdf

59 City Warsaw P+R car parks (21 May 2020) httpswarszawa19115pl-parkingi-p-r 60 Editorial Office in Warsaw ldquoTown hall invests in electric cars Officials will drive them for 5 yearsrdquo (12 January

2020) httpswarszawanaszemiastoplratusz-inwestuje-w-samochody-elektryczne-urzednicy-bedaarc1-7501377

61 Janusz Krzeszowski ldquoEco-friendly Nissan will replace the most worn-out combustion cars in the officerdquo (30 May 2019) httpswwwwroclawplsrodowiskoekologiczne-nissany-auta-elektryczne-w-urzedzie-miejskim-wroclawia

62 Wojciech Kwinta ldquoThe first electric cars for Krakow municipal institutions are already hererdquo inzynieriacom 3 November 2019 httpsinzynieriacomenergetykawiadomosci56970pierwsze-samochody-elektryczne-dla-krakowskich-instytucji-miejskich-juz-sa

63 Poznan City Hall ldquoThe city of Poznań is testing electric carsrdquo (3 February 2020) httpswwwpoznanplmiminfonewsmiasto-poznan-testuje-elektryczne-samochody143016html

64 Marcin Gigiel ldquoPresident Krzystek will use a company electric carrdquo (19 April 2019) httpswszczecinieplaktualnosciprezydent_krzystek_bedzie_korzystal_ze_sluzbowego_samochodu_elektrycznegoid-31640html

65 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

13 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

been funding the deployment of publicly accessible charging stations over the past years with the aim to install at least 15000 by the end of 202066

The Law on Electromobility also specifies goals for the roll-out of the alternative-fuels infrastructure in cities including charging stations for electric vehicles Deployment targets depend on the population number of registered cars and the level of motorization According to the law by the end of 2020 there must be 1000 publicly available electric car charging stations available in cities with more than 1 million inhabitants where at least 600000 motor vehicles have been registered and where the motorization level is at least 700 motor vehicles per 1000 inhabitants The number of envisaged public charging stations gradually decreases to 60 in cities with more than 100000 inhabitants at least 60000 vehicles on the roads and at least 400 vehicles per 1000 inhabitants Apart from city targets the legislation also considers the provision of charging infrastructure on main transit routes without specifying target figures

Charging infrastructure promotion (nationallocal)As part of the incentive schemes for BEVs introduced by the Polish government at the end of June 2020 aid is also provided for installing charging infrastructure when purchasing or leasing a new car Businesses purchasing or leasing a zero-emission van under the national eVAN support program can receive 50 of the eligible costs at a maximum aid of PLN 5000 (euro1200) for a charging point up to 22 kW Micro small and medium-sized businesses purchasing or leasing a passenger car as part of the Koliber program can claim 20 of the eligible cost for a charging point up to 22 kW but no more than PLN 25000 (euro5800)67

Outside of national funding for charging points in the business and workplace context there are no specific schemes targeting public and private charging options On a local level there are also no support programs offered by the authorities at current

Electric vehicle ready building codes (nationallocal)According to the Law on Electromobility parking spaces in all newly built public and multi-family buildings shall be equipped with electrical wiring for charging capacities of at least 37 kW This applies to new developments in municipalities with over 100000 inhabitants where more than 60000 vehicles are registered and where the motorization rate is at least 400 cars per 1000 inhabitants Beyond the Law on Electromobility there are currently no implementation provisions which specify the share or number of parking spaces to be equipped A draft ordinance by the Minister of Energy published in May 2019 suggests for public buildings a minimum connection capacity of 20 of the planned number of parking spaces and 37 kW For multi-family buildings the minimum connection capacity is 100 of the planned number of parking spaces and 37 kilowatts kW68 The draft regulation is still in consultation

Beyond the national regulations there are no specific or additional local-level laws

66 Federal Ministry of Transport and Digital Infrastructure ldquoFunding guideline for charging infrastructure for electric vehiclesrdquo (2020) httpswwwbmvideSharedDocsDEArtikelGfoerderrichtlinie-ladeinfrastruktur-elektrofahrzeugehtml

67 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo

68 Minister of Energy Projekt z dnia 25 kwietnia 2019 r Rozporządzenie Ministra Energii z dnia hellip w sprawie sposobu ustalania mocy przyłączeniowej dla wewnętrznych i zewnętrznych stanowisk postojowych związanych z budynkami użyteczności publicznej oraz budynkami mieszkalnymi wielorodzinnymi (Draft of 25 April 2019 Management Minister of Energy from the day on the method of determining the connection capacity for internal and external parking spaces related to public buildings and multi-family residential buildings) (25 April 2019) httpslegislacjarclgovpldocs567123217531259125812591259dokument394845pdf

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 7: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

7 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

of 2020 as identified in the National Framework for Alternative Fuels Infrastructure Development Policy24

At the city level Warsaw has pledged to make a major area of its city zero emission by 2030 The city is part of the global C40 network and is one of 35 cities which signed the Fossil Fuel Free Streets Declaration pledging to reduce the number of polluting vehicles on streets and a transitioning away from vehicles powered by fossil fuels25

Electric vehicle strategic and legal framework Over the past years the Polish government has published and adopted a number of strategic plans and legal frameworks and provided funding to support the uptake of electric vehicles in the country

raquo In March 2017 the government adopted the Electromobility Development Plan which provides a strategy for electric vehicle and charging infrastructure deployment in Poland with the aim to improve air quality and foster economic growth26

raquo In the same month the government adopted the National Framework for Alternative Fuels Infrastructure Development Policy in order to implement EU Directive 201494 on the deployment of alternative fuels infrastructure The framework includes the goal to install 6400 charging points including 400 fast charging points on the Trans-European Transport Network (TEN-T) by 202027

raquo The Law on Electromobility and Alternative Fuels came into force in February 2018 and is the first legislation on electromobility in Poland It lists detailed targets and measures for the uptake of electric vehicles by public institutions including public transportation vehicles and charging infrastructure in most populated cities (over 100000 inhabitants)28

raquo In June 2018 the Law on Biocomponents and Liquid Biofuels was amended and introduced the Low Emission Transport Fund to promote the development of alternative fueled vehicles29 In July 2019 the management of the Fund was entrusted to the National Fund for Environmental Protection and Water Management which took on the task of funding the electrification of Polandrsquos vehicle fleet30

At local levels the government with co-funding from the EU is supporting the efforts of municipalities to grow the electrification of its fleets For example within the national program GEPARD II funding is provided for over 200 local governments to develop electromobility strategies31

24 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

25 C40 Cities Climate Leadership Group Our Commitment to Green and Healthy Streets Fossil Fuel Free Streets Declaration (accessed 29 April 2020) httpswwwc40orgothergreen-and-healthy-streets

26 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo 27 Ministry of State Assets ldquoElectromobility in Poland (archive version)rdquo28 Kancelaria Sejmu (Chancellery of the Seym) Ustawa z dnia 11 stycznia 2018 r o elektromobilności i paliwach

alternatywnych [Law of 11 January 2018 on electromobility and alternative fuels] (2018) httpprawosejmgovplisapnsfdownloadxspWDU20180000317TD20180317Lpdf

29 Ministry of Climate Low Emission Transport Fund (nd) httpswwwgovplwebklimatfundusz-niskoemisyjnego-transportu

30 Kancelaria Sejmu Dz U 2019 poz 1527 USTAWA z dnia 19 lipca 2019 r o zmianie ustawy o biokomponentach i biopaliwach ciekłych oraz niektoacuterych innych ustaw [Dz Laws of 2019 item 1527 LAW of 19 July 2019 on amending the act on biocomponents and liquid biofuels and some other acts) (July 2019) httpsisapsejmgovplisapnsfdownloadxspWDU20190001527TD20191527Lpdffbclid=IwAR3vV4S81Y_kMoEKtR75PC-yC0eKGY2FRWLiH9rlu6aNSNPf2_na8yAXsbY

31 National Fund for Environmental Protection and Water Management ldquoGEPARD II - low-emission transport Part 2 Strategy for electromobility developmentrdquo (2020) httpnfosigwgovploferta-finansowaniasrodki-krajoweprogramy-priorytetowegepard-ii--transport-niskoemisyjny-czesc-2informacje-o-naborze-

8 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

BEV and PHEV purchase incentives (national)To address the cost gap between electric and conventional cars the Polish government launched three incentive schemes in June 2020 for the purchase of a new electric vehicle not previously registered32 One incentive scheme called ldquoGreen Carrdquo is targeted at private individuals and supports the purchase of a new purely electric (BEV or FCEV) car The aid covers 15 of the purchase price with a maximum amount of PLN 18750 (euro4400) and is capped at a gross purchase price of PLN 125000 (euro29000) Another program ldquoeVANrdquo provides one-time incentives up to PLN 70000 (euro16000) for businesses purchasing or leasing a zero-emission delivery van The third program under the name ldquoKoliberrdquo benefits micro small and medium-sized businesses and targets zero-emission passenger transport The purchase or lease of an electric car is supported with up to PLN 25000 (euro6000) The budget secured by the government for all three programs will allow the co-financing of about 4000 electric cars and vans All programs are aimed at the purchases of new BEVs rather than PHEVs

Electric vehicle registration tax benefit (national)In Poland taxes and fees apply when purchasing or registering a car for the first time This includes one-time payments such as value added tax (VAT) a registration fee and excise duty VAT accounts for 23 of the vehiclersquos price without exemptions for electric cars A registration tax is not imposed when registering a vehicle for the first time Only a registration fee and a fee for an identification card is necessary totalling about euro60 without benefits for purchasers of an electric car When registering a new or used imported passenger car in Poland for the first time an excise tax of 31 of a vehiclersquos net value is imposed if the engine capacity is up to 2000 cm3 and 186 is imposed for cars above 2000 cm3 33 The Law on Electromobility and Alternative Fuels suggests exemptions on excise taxes for electric passenger cars (BEVs PHEVs) FCEVs hybrid vehicles (HEVs) and mild hybrid electric vehicles (MHEVs) The excise tax is waived for zero-emission electric cars (BEVs FCEVs) without a defined timeframe In contrast for PHEVs the excise duty waiver is valid until February 2021 under current plans34 As an example The purchaser of a gasoline Volkswagen Golf with an engine capacity of 1498 cm3 has to pay excise duty of euro500 compared to almost euro600 for a diesel model (1968 cm3) Yet for a vehicle with a higher engine capacity ie above the threshold of 2000 cm3 one-time payments could reach several thousands of euros For a diesel Mercedes X-class sport utility vehicle with an engine displacement of 2298 cm3 the one-time excise duty would be more than euro5500 However for most brands sold in Europe the average engine displacement of new passenger cars has been below 2000 cm3 over the past 20 years35

Electric vehicle usage tax benefit (national)Unlike most countries in Europe the Polish government does not impose periodical ownership taxes for owning a car36 instead choosing to levy taxes on the fuel or electricity used to power the vehicle For Euro-Super 95 and diesel the tax share in

32 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo (25 June 2020) httpwwwnfosigwgovplo-nfosigwaktualnosciart1603nfosigw-dofinansuje-zakup-pojazdow-elektrycznychhtml

33 Kancelaria Sejmu Ustawa z dnia 6 grudnia 2008 r o podatku akcyzowym (Act of 6 December 2008 on excise duty) (8 May 2020) httpisapsejmgovplisapnsfdownloadxspWDU20090030011UD20090011Ljpdf

34 Ministry of State Assets ldquoExemption from excise duty on electric hybrid and hydrogen powered vehicles is not public aidrdquo (14 January 2019) httpswwwgovplwebaktywa-panstwowezwolnienie-z-podatku-akcyzowego-od-pojazdow-elektrycznych-hybrydowych-i-napedzanych-wodorem-nie-jest-pomoca-publiczna1fbclid=IwAR0CC5RiRfpWIUfyeuqlNR8vrg5m1oPNSjulnQLa8EgccyEnD65-kAWjeCg

35 Peter Mock ed European vehicle market statistics 20192020 (ICCT Washington DC 2019) httpstheicctorgpublicationseuropean-vehicle-market-statistics-20192020

36 ACEA ndash European Automobile Manufacturerrsquos Association ldquo2020 ACEA Tax Guiderdquo (2020) httpsaceabeuploadsnews_documentsACEA_Tax_Guide_2020pdf

9 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

the end consumer price was 58 and 54 respectively in July 202037 Taxes on fuels in Poland consist of a 23 VAT an excise tax of PLN 1520 (euro035) per 1000 liters for gasoline fuel and PLN 1151 (euro027) for diesel fuel and a fuel tax The fuel tax rates are PLN 15549 (euro36) for 1000 liters of gasoline and PLN 32334 (euro75) per 1000 liters of diesel38 In 2019 an emission surcharge of PLN 80 (euro19) per 1000 liters fuel (gasoline and diesel) was introduced to finance among others the development of electromobility in Poland39 In terms of electricity costs for charging an electric car households consuming between 5000 and 15000 kWh electricity per year paid about 18 tax on the end consumer price based on average prices for the second half of 201940

Excursus Effects of incentives and tax breaks on vehicle costsFigure 5 shows the effects of taxes tax breaks and one-time purchase incentives on the total cost of ownership for newly purchased cars For comparison we choose the gasoline and diesel versions of the Volkswagen Golf the best-selling passenger car model in the EU41 and the battery electric Nissan Leaf one of the few BEVs available in Poland that is eligible for a bonus The costs are shown over a period of 4 years discounted at 6 for annual cost components and assume private holders similar to previous studies42 In the absence of registration and ownership taxes the cost comparison includes the one-time costs of car purchase (base price VAT excise duty registration fee) and fuel costs differentiated by pre-tax and taxed price Information on fuel consumption is based on the New European Driving Cycle (NEDC) To reflect vehicle real-world consumption for fuel cost calculation we apply an adjustment factor of 137 for gasoline cars and 145 for diesel to the NEDC fuel consumption and energy consumption values43 Fuel prices as of July 6 202044 were used and electricity prices for household consumers with a consumption between 5000 and 15000 kWh were applied based on average prices in Poland in the second half of 2019 and the assumption that private holders charge their electric car at home45 Due to lack of data on average distance travelled in Poland per year we assume 13000 km46

37 European Commission Total taxation share in the end consumer price for Euro-Super 95 and diesel oil (25 May 2020) httpeceuropaeuenergymapsmaps_weekly_oil_bulletinlatest_taxation_oil_pricespdf

38 Minister Infrastruktury ldquoObwieszczenie ministra Infrastruktury z dnia 25 lutego 2020 r zmieniające obwieszczenie w sprawie wysokości stawki opłaty paliwowej na rok 2020 (Notice infrastructure minister of February 25 2020 amending the notice on the amount of the fuel surcharge rate for 2020)rdquo (25 February 2020) httpisapsejmgovplisapnsfdownloadxspWMP20200000211OM20200211pdf

39 Kancelaria Sejmu ldquoUSTAWA z dnia 27 kwietnia 2001 r Prawo ochrony środowiska (ACT of 27 April 2001 Environmental Protection Law)rdquo (27 April 2020) httpisapsejmgovplisapnsfdownloadxspWDU20010620627UD20010627Ljpdf

40 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

41 Peter Mock European vehicle market statistics 20192020 42 Sandra Wappelhorst Peter Mock ed and Zifei Yang Using vehicle taxation policy to lower transport emissions

An overview for passenger cars in Europe (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsEU_vehicle_taxation_Report_20181214_0pdf

43 Uwe Tietge Sonsoles Diacuteaz Peter Mock John German Anup Bandivadekar and Norbert Ligterink From laboratory to road ndash A 2016 update of official and lsquoreal-worldrsquo fuel consumption and CO2 values for passenger cars in Europe (ICCT Washington DC 2016) httpswwwtheicctorgsitesdefaultfilespublicationsICCT_LaboratoryToRoad_2016pdf

44 EC ndash European Commission Weekly Oil Bulletin (2020) httpseceuropaeuenergydata-analysisweekly-oil-bulletin_enredir=1

45 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

46 ACEA ndash European Automobile Manufacturerrsquos Association ldquoACEA Report Vehicles in use Europe 2018rdquo (2018) httpswwwaceabeuploadsstatistic_documentsACEA_Report_Vehicles_in_use-Europe_2018pdf

10 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

euro0

euro5000

euro10000

euro15000

euro20000

euro25000

euro30000

euro35000

4-y

ear

cons

umer

ow

ners

hip

co

sts

Bonus

Fuelelectricity (tax)

Fuelelectricity (pre-tax)

Registration fee

Excise duty

Value added tax

Base price

4-year costs

GasolineVolkswagen Golf

(110 kW 1498 cm3)

DieselVolkswagen Golf

(110 kW 1968 cm3)

BEVNissan Leaf

(110 kW 0 cm3)

euro4100

Figure 5 Comparison of 4-year consumer ownership costs for a gasoline and diesel Volkswagen Golf and BEV Nissan Leaf

Based on these assumptions comparing the conventional Volkswagen Golf models with the electric Nissan Leaf shows that the newly introduced bonus payment on car purchase brings the 4-year cost down by about euro4100 or 15 of the gross purchase price for the Nissan Leaf Yet even with the bonus included the Nissan Leaf still has a euro3000 cost disadvantage over the gasoline Volkswagen Golf Over a holding period of 4 years the cost disadvantage remains yet at a smaller level at over euro1000 The reduction is the result of the euro500 excise tax on gasoline and lower electricity costs of about euro1500 over 4 years compared to 4-year gasoline fuel costs of more than euro3000 In contrast compared to the Volkswagen Golf diesel the Nissan Leaf bears almost identical purchase costs and has a cost advantage of euro2000 over four years again due to the one-time bonus and advantages on excise tax and fuel costs

Electric vehicle company car benefit for employers and employees (national)In the end of 2019 only 32 of electric cars in Poland were owned by private individuals The majority of electric cars (68) were owned by businesses47 Of these leasing companies accounted for 50 carsharing companies for 18 and car dealers for 10 The remaining 22 accounted for manufacturer importers car rental companies and others The Law on Electromobility includes specific tax incentives for electric company cars This involves longer depreciation write-offs compared to conventional cars for companies purchasing a vehicle Under the current policy the maximum passenger car value that can be deducted if a company car is used for business purposes is PLN 150000 (euro35000) for combustion engine and hybrid cars For electric cars the amount is significantly higher at PLN 225000 (euro52000)48 In contrast to electric company cars only used for business purposes there are currently no special provisions for employees privately using an electric company car

Electric vehicle parking benefit The Electromobility Law exempts BEV drivers from parking fees in paid public parking zones The city of Szczecin already introduced preferential parking fees for

47 Krzyczkowska Zuzanna ldquoThere are already 10000 electric cars on Polish roads When will there be a millionrdquo Motopl 14 January 2020 httpsmotoplMotoPL78838925597232na-polskich-drogach-jest-juz-10-tysiecy-samochodow-elektrycznychhtml

48 PwC Doing business in Poland 2019 (2019) httpswwwpwcplplpdfdoing-bussiness-in-poland-2019pdf

11 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

low-emission vehicles in 2014 allowing owners of an electric or hybrid car emitting up to 100 g CO2km to buy a 12-month subscription for parking in the inner-city paid parking zone for PLN 10 (euro200)49 Reduced parking fees in other cities range from PLN 2 (euro050) per hour in the city of Wrocław50 to euro5 for 3-hour parking in Poznań51 Some cities also offer reduced parking fees for PHEVs such as the cities of Krakoacutew52 and Poznań53

Electric vehicle access benefit (national) According to the Electromobility Law local governments must allow BEV drivers access to bus lanes although cities can enact requirements on minimum occupancy to limit this access In addition the law gives local authorities a legal basis to implement clean transport zones (CTZs) allowing access to electric vehicles (BEVs FCEVs) and gas-powered vehicles (CNGs LPGs) only Despite the exclusion of PHEVs by definition municipalities can expand the catalogue of allowed vehicles to include PHEVs According to the law a CTZ can also only be established in city centers of cities with more than 100000 inhabitants A monetary penalty on non-compliant vehicles can be imposed and used for the purpose of marking the CTZs purchasing of zero-emission buses and covering the costs of performing analyses The maximum penalty for non-compliant vehicles cannot exceed PLN 250 PLN (euro050) per hour according to the law54 However the current regulations are too vague to be implemented by the municipalities and the government is therefore working on changing and specifying these regulations55 To date a CTZ has only been introduced in Krakoacutew starting in January 2019 However due to appeals of business owners living within the zone almost all constraints for combustion-engine vehicles in the zone have been abolished56 The city of Poznań performed a public consultation about the development of electromobility in the city between April and May 2020 including proposals for the introduction of a CTZ57

Electric vehicle charging benefit (local)In Poland no city offers a comprehensive network of free charging options for electric vehicles at city owned or managed public parking spaces Yet this policy is a common measure in the early electric vehicle transition stage in cities outside Poland such as

49 City Council of Szczecin ldquoCity Council of Szczecin of 26 May 2014 on the announcement of the consolidated text of the resolution on the establishment of a paid parking zone fees for parking vehicles on the public roads of the City of Szczecin and the way of collecting themrdquo (26 May 2014) httpssppszczecinplplikiuchwala-jtpdf

50 Wroclaw Paid parking zone (23 July 2019) httpswwwwroclawplenpaid-parking-zone 51 Telewizja ldquoThe last day of cheap parking in Poznanrdquo (29 May 2020) httpspoznantvppl48288715ostatni-

dzien-taniego-parkowania-w-poznaniu 52 Dziennik Urzędowy Wojewoacutedztwa Małopolskiego [Official journal province of Malopolska] Uchwala Nr

XXII45619 Rady Miasta Krakowa z dnia 17 lipca 2019 roku w sprawie zmiany uchwały Nr LXXXIX217717 Rady Miasta Krakowa z dnia 22 listopada 2017 r w sprawie ustalenia strefy płatnego parkowania ustalenia opłat za postoacutej pojazdoacutew samochodowych na drogach publicznych w strefie płatnego parkowania wprowadzenia opłaty abonamentowej dla niektoacuterych użytkownikoacutew droacuteg oraz sposobu pobierania tych opłat [Resolution No XXII45619 KRAKOW City Council of 17 July 2019 on the amendment of Resolution No LXXXIX217717 of the Krakow City Council of 22 November 2017 on the establishment of a paid parking zone the establishment of parking fees for motor vehicles on public roads in the paid parking zone the introduction of a subscription fee for certain road users and the method of collecting these fees] (17 July 2019) httpmikrakowplpdfakty-prawneuchwala-nr-xxii45619pdf

53 Telewizja ldquoThe last day of cheap parking in Poznanrdquo54 Law of 11 January 2018 on Electromobility and Alternative Fuels version from May 22 2020 Journal of Laws

httpssiplexplakty-prawnedzu-dziennik-ustawelektromobilnosc-i-paliwa-alternatywne-18683445 55 Łukasz Dubiński ldquoClean transport zones (administrative and legal analysis)rdquo (3 July 2019) httpswwwcirepl

item182937200000strefy-czystego-transportu-analiza-administracyjno-prawnahtml56 Municipal Krakow ABC of clean transport zone in Kazimierz (19 February 2019) httpswwwkrakowplaktual

nosci22658529komunikatabc_strefy_czystego_transportu_na_kazimierzuhtml Municipal Krakow ldquoWhat is left of the Clean Transport Zone in Kazimierzrdquo (6 March 2019) httpswww krakowplaktualnosci22793526komunikatco_zostalo_ze_strefy_czystego_transportu_na_kazimierzuhtml

57 Poznan City Hall ldquoPublic consultation on the draft Strategy for Electromobility Development for the City of Poznań until 2035 - INTERNET CONSULTATIONrdquo (2020) httpswwwpoznanplmimkonsultujemykonsultacje-spoleczne-dotyczace-strategii-rozwoju-elektromobilnosci-dla-miasta-poznania-do-roku-2035-konsultacje-internetowep381173812552515html

12 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Oslo and Paris58 There are selected programs such as in Warsaw where drivers of an electric vehicle can charge their car for free in one out of five assigned car parks if the driver possesses an ECO card59 An increasing number of retailers are also offering free charging at semi-public spaces

Public electric vehicle procurement (nationallocal)The Law on Electromobility also sets fleet and procurement targets for electric vehicles For the central administrationrsquos car fleet which includes government ministries at least 10 of the fleet is required to be comprised of electric vehicles from 2022 and at least 20 electric vehicles are required from 2023 The target for the share of electric vehicles in the fleets of local administrations with more than 50000 inhabitants is 10 by 2022 In addition the law sets targets for other vehicles in addition to passenger cars For example the target for zero-emission buses is 5 by 2021 10 by 2023 and 20 by 2025 in cities with more than 50000 inhabitants

To reach these targets local governments across Poland are beginning to introduce electric vehicles to their municipal fleets In terms of passenger cars the city council of Warsaw opened a tender in late 2019 to lease the first 16 electric cars for its municipal fleet60 In mid-2019 the city council of Wrocław added eight electric cars to its municipal fleet61 Krakoacutew ordered 47 electric cars in the end of 2019 which will be rented over a three year period62 The city of Poznań tested three electric and natural gas vehicles in early 202063 The municipal of Szczecin had just over 10 electric cars in its fleet in mid-201964

Policies driving charging infrastructure deployment Building the necessary charging infrastructure increasing consumerrsquos accessibility and addressing potential barriers is crucial in the transition to electric vehicles This includes public charging as well as the possibility to charge an electric car at home or at workplaces

Charging infrastructure goals (national)The National Framework for Alternative Fuels Infrastructure Development Policy includes a target of 6000 publicly accessible normal charging points and 400 fast charging points by the end of 202065 which is likely to be delayed by one year due to the impacts of the COVID-19 pandemic In comparison the German government has

58 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsEV_city_policies_white_paper_fv_20200224pdf

59 City Warsaw P+R car parks (21 May 2020) httpswarszawa19115pl-parkingi-p-r 60 Editorial Office in Warsaw ldquoTown hall invests in electric cars Officials will drive them for 5 yearsrdquo (12 January

2020) httpswarszawanaszemiastoplratusz-inwestuje-w-samochody-elektryczne-urzednicy-bedaarc1-7501377

61 Janusz Krzeszowski ldquoEco-friendly Nissan will replace the most worn-out combustion cars in the officerdquo (30 May 2019) httpswwwwroclawplsrodowiskoekologiczne-nissany-auta-elektryczne-w-urzedzie-miejskim-wroclawia

62 Wojciech Kwinta ldquoThe first electric cars for Krakow municipal institutions are already hererdquo inzynieriacom 3 November 2019 httpsinzynieriacomenergetykawiadomosci56970pierwsze-samochody-elektryczne-dla-krakowskich-instytucji-miejskich-juz-sa

63 Poznan City Hall ldquoThe city of Poznań is testing electric carsrdquo (3 February 2020) httpswwwpoznanplmiminfonewsmiasto-poznan-testuje-elektryczne-samochody143016html

64 Marcin Gigiel ldquoPresident Krzystek will use a company electric carrdquo (19 April 2019) httpswszczecinieplaktualnosciprezydent_krzystek_bedzie_korzystal_ze_sluzbowego_samochodu_elektrycznegoid-31640html

65 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

13 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

been funding the deployment of publicly accessible charging stations over the past years with the aim to install at least 15000 by the end of 202066

The Law on Electromobility also specifies goals for the roll-out of the alternative-fuels infrastructure in cities including charging stations for electric vehicles Deployment targets depend on the population number of registered cars and the level of motorization According to the law by the end of 2020 there must be 1000 publicly available electric car charging stations available in cities with more than 1 million inhabitants where at least 600000 motor vehicles have been registered and where the motorization level is at least 700 motor vehicles per 1000 inhabitants The number of envisaged public charging stations gradually decreases to 60 in cities with more than 100000 inhabitants at least 60000 vehicles on the roads and at least 400 vehicles per 1000 inhabitants Apart from city targets the legislation also considers the provision of charging infrastructure on main transit routes without specifying target figures

Charging infrastructure promotion (nationallocal)As part of the incentive schemes for BEVs introduced by the Polish government at the end of June 2020 aid is also provided for installing charging infrastructure when purchasing or leasing a new car Businesses purchasing or leasing a zero-emission van under the national eVAN support program can receive 50 of the eligible costs at a maximum aid of PLN 5000 (euro1200) for a charging point up to 22 kW Micro small and medium-sized businesses purchasing or leasing a passenger car as part of the Koliber program can claim 20 of the eligible cost for a charging point up to 22 kW but no more than PLN 25000 (euro5800)67

Outside of national funding for charging points in the business and workplace context there are no specific schemes targeting public and private charging options On a local level there are also no support programs offered by the authorities at current

Electric vehicle ready building codes (nationallocal)According to the Law on Electromobility parking spaces in all newly built public and multi-family buildings shall be equipped with electrical wiring for charging capacities of at least 37 kW This applies to new developments in municipalities with over 100000 inhabitants where more than 60000 vehicles are registered and where the motorization rate is at least 400 cars per 1000 inhabitants Beyond the Law on Electromobility there are currently no implementation provisions which specify the share or number of parking spaces to be equipped A draft ordinance by the Minister of Energy published in May 2019 suggests for public buildings a minimum connection capacity of 20 of the planned number of parking spaces and 37 kW For multi-family buildings the minimum connection capacity is 100 of the planned number of parking spaces and 37 kilowatts kW68 The draft regulation is still in consultation

Beyond the national regulations there are no specific or additional local-level laws

66 Federal Ministry of Transport and Digital Infrastructure ldquoFunding guideline for charging infrastructure for electric vehiclesrdquo (2020) httpswwwbmvideSharedDocsDEArtikelGfoerderrichtlinie-ladeinfrastruktur-elektrofahrzeugehtml

67 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo

68 Minister of Energy Projekt z dnia 25 kwietnia 2019 r Rozporządzenie Ministra Energii z dnia hellip w sprawie sposobu ustalania mocy przyłączeniowej dla wewnętrznych i zewnętrznych stanowisk postojowych związanych z budynkami użyteczności publicznej oraz budynkami mieszkalnymi wielorodzinnymi (Draft of 25 April 2019 Management Minister of Energy from the day on the method of determining the connection capacity for internal and external parking spaces related to public buildings and multi-family residential buildings) (25 April 2019) httpslegislacjarclgovpldocs567123217531259125812591259dokument394845pdf

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 8: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

8 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

BEV and PHEV purchase incentives (national)To address the cost gap between electric and conventional cars the Polish government launched three incentive schemes in June 2020 for the purchase of a new electric vehicle not previously registered32 One incentive scheme called ldquoGreen Carrdquo is targeted at private individuals and supports the purchase of a new purely electric (BEV or FCEV) car The aid covers 15 of the purchase price with a maximum amount of PLN 18750 (euro4400) and is capped at a gross purchase price of PLN 125000 (euro29000) Another program ldquoeVANrdquo provides one-time incentives up to PLN 70000 (euro16000) for businesses purchasing or leasing a zero-emission delivery van The third program under the name ldquoKoliberrdquo benefits micro small and medium-sized businesses and targets zero-emission passenger transport The purchase or lease of an electric car is supported with up to PLN 25000 (euro6000) The budget secured by the government for all three programs will allow the co-financing of about 4000 electric cars and vans All programs are aimed at the purchases of new BEVs rather than PHEVs

Electric vehicle registration tax benefit (national)In Poland taxes and fees apply when purchasing or registering a car for the first time This includes one-time payments such as value added tax (VAT) a registration fee and excise duty VAT accounts for 23 of the vehiclersquos price without exemptions for electric cars A registration tax is not imposed when registering a vehicle for the first time Only a registration fee and a fee for an identification card is necessary totalling about euro60 without benefits for purchasers of an electric car When registering a new or used imported passenger car in Poland for the first time an excise tax of 31 of a vehiclersquos net value is imposed if the engine capacity is up to 2000 cm3 and 186 is imposed for cars above 2000 cm3 33 The Law on Electromobility and Alternative Fuels suggests exemptions on excise taxes for electric passenger cars (BEVs PHEVs) FCEVs hybrid vehicles (HEVs) and mild hybrid electric vehicles (MHEVs) The excise tax is waived for zero-emission electric cars (BEVs FCEVs) without a defined timeframe In contrast for PHEVs the excise duty waiver is valid until February 2021 under current plans34 As an example The purchaser of a gasoline Volkswagen Golf with an engine capacity of 1498 cm3 has to pay excise duty of euro500 compared to almost euro600 for a diesel model (1968 cm3) Yet for a vehicle with a higher engine capacity ie above the threshold of 2000 cm3 one-time payments could reach several thousands of euros For a diesel Mercedes X-class sport utility vehicle with an engine displacement of 2298 cm3 the one-time excise duty would be more than euro5500 However for most brands sold in Europe the average engine displacement of new passenger cars has been below 2000 cm3 over the past 20 years35

Electric vehicle usage tax benefit (national)Unlike most countries in Europe the Polish government does not impose periodical ownership taxes for owning a car36 instead choosing to levy taxes on the fuel or electricity used to power the vehicle For Euro-Super 95 and diesel the tax share in

32 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo (25 June 2020) httpwwwnfosigwgovplo-nfosigwaktualnosciart1603nfosigw-dofinansuje-zakup-pojazdow-elektrycznychhtml

33 Kancelaria Sejmu Ustawa z dnia 6 grudnia 2008 r o podatku akcyzowym (Act of 6 December 2008 on excise duty) (8 May 2020) httpisapsejmgovplisapnsfdownloadxspWDU20090030011UD20090011Ljpdf

34 Ministry of State Assets ldquoExemption from excise duty on electric hybrid and hydrogen powered vehicles is not public aidrdquo (14 January 2019) httpswwwgovplwebaktywa-panstwowezwolnienie-z-podatku-akcyzowego-od-pojazdow-elektrycznych-hybrydowych-i-napedzanych-wodorem-nie-jest-pomoca-publiczna1fbclid=IwAR0CC5RiRfpWIUfyeuqlNR8vrg5m1oPNSjulnQLa8EgccyEnD65-kAWjeCg

35 Peter Mock ed European vehicle market statistics 20192020 (ICCT Washington DC 2019) httpstheicctorgpublicationseuropean-vehicle-market-statistics-20192020

36 ACEA ndash European Automobile Manufacturerrsquos Association ldquo2020 ACEA Tax Guiderdquo (2020) httpsaceabeuploadsnews_documentsACEA_Tax_Guide_2020pdf

9 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

the end consumer price was 58 and 54 respectively in July 202037 Taxes on fuels in Poland consist of a 23 VAT an excise tax of PLN 1520 (euro035) per 1000 liters for gasoline fuel and PLN 1151 (euro027) for diesel fuel and a fuel tax The fuel tax rates are PLN 15549 (euro36) for 1000 liters of gasoline and PLN 32334 (euro75) per 1000 liters of diesel38 In 2019 an emission surcharge of PLN 80 (euro19) per 1000 liters fuel (gasoline and diesel) was introduced to finance among others the development of electromobility in Poland39 In terms of electricity costs for charging an electric car households consuming between 5000 and 15000 kWh electricity per year paid about 18 tax on the end consumer price based on average prices for the second half of 201940

Excursus Effects of incentives and tax breaks on vehicle costsFigure 5 shows the effects of taxes tax breaks and one-time purchase incentives on the total cost of ownership for newly purchased cars For comparison we choose the gasoline and diesel versions of the Volkswagen Golf the best-selling passenger car model in the EU41 and the battery electric Nissan Leaf one of the few BEVs available in Poland that is eligible for a bonus The costs are shown over a period of 4 years discounted at 6 for annual cost components and assume private holders similar to previous studies42 In the absence of registration and ownership taxes the cost comparison includes the one-time costs of car purchase (base price VAT excise duty registration fee) and fuel costs differentiated by pre-tax and taxed price Information on fuel consumption is based on the New European Driving Cycle (NEDC) To reflect vehicle real-world consumption for fuel cost calculation we apply an adjustment factor of 137 for gasoline cars and 145 for diesel to the NEDC fuel consumption and energy consumption values43 Fuel prices as of July 6 202044 were used and electricity prices for household consumers with a consumption between 5000 and 15000 kWh were applied based on average prices in Poland in the second half of 2019 and the assumption that private holders charge their electric car at home45 Due to lack of data on average distance travelled in Poland per year we assume 13000 km46

37 European Commission Total taxation share in the end consumer price for Euro-Super 95 and diesel oil (25 May 2020) httpeceuropaeuenergymapsmaps_weekly_oil_bulletinlatest_taxation_oil_pricespdf

38 Minister Infrastruktury ldquoObwieszczenie ministra Infrastruktury z dnia 25 lutego 2020 r zmieniające obwieszczenie w sprawie wysokości stawki opłaty paliwowej na rok 2020 (Notice infrastructure minister of February 25 2020 amending the notice on the amount of the fuel surcharge rate for 2020)rdquo (25 February 2020) httpisapsejmgovplisapnsfdownloadxspWMP20200000211OM20200211pdf

39 Kancelaria Sejmu ldquoUSTAWA z dnia 27 kwietnia 2001 r Prawo ochrony środowiska (ACT of 27 April 2001 Environmental Protection Law)rdquo (27 April 2020) httpisapsejmgovplisapnsfdownloadxspWDU20010620627UD20010627Ljpdf

40 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

41 Peter Mock European vehicle market statistics 20192020 42 Sandra Wappelhorst Peter Mock ed and Zifei Yang Using vehicle taxation policy to lower transport emissions

An overview for passenger cars in Europe (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsEU_vehicle_taxation_Report_20181214_0pdf

43 Uwe Tietge Sonsoles Diacuteaz Peter Mock John German Anup Bandivadekar and Norbert Ligterink From laboratory to road ndash A 2016 update of official and lsquoreal-worldrsquo fuel consumption and CO2 values for passenger cars in Europe (ICCT Washington DC 2016) httpswwwtheicctorgsitesdefaultfilespublicationsICCT_LaboratoryToRoad_2016pdf

44 EC ndash European Commission Weekly Oil Bulletin (2020) httpseceuropaeuenergydata-analysisweekly-oil-bulletin_enredir=1

45 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

46 ACEA ndash European Automobile Manufacturerrsquos Association ldquoACEA Report Vehicles in use Europe 2018rdquo (2018) httpswwwaceabeuploadsstatistic_documentsACEA_Report_Vehicles_in_use-Europe_2018pdf

10 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

euro0

euro5000

euro10000

euro15000

euro20000

euro25000

euro30000

euro35000

4-y

ear

cons

umer

ow

ners

hip

co

sts

Bonus

Fuelelectricity (tax)

Fuelelectricity (pre-tax)

Registration fee

Excise duty

Value added tax

Base price

4-year costs

GasolineVolkswagen Golf

(110 kW 1498 cm3)

DieselVolkswagen Golf

(110 kW 1968 cm3)

BEVNissan Leaf

(110 kW 0 cm3)

euro4100

Figure 5 Comparison of 4-year consumer ownership costs for a gasoline and diesel Volkswagen Golf and BEV Nissan Leaf

Based on these assumptions comparing the conventional Volkswagen Golf models with the electric Nissan Leaf shows that the newly introduced bonus payment on car purchase brings the 4-year cost down by about euro4100 or 15 of the gross purchase price for the Nissan Leaf Yet even with the bonus included the Nissan Leaf still has a euro3000 cost disadvantage over the gasoline Volkswagen Golf Over a holding period of 4 years the cost disadvantage remains yet at a smaller level at over euro1000 The reduction is the result of the euro500 excise tax on gasoline and lower electricity costs of about euro1500 over 4 years compared to 4-year gasoline fuel costs of more than euro3000 In contrast compared to the Volkswagen Golf diesel the Nissan Leaf bears almost identical purchase costs and has a cost advantage of euro2000 over four years again due to the one-time bonus and advantages on excise tax and fuel costs

Electric vehicle company car benefit for employers and employees (national)In the end of 2019 only 32 of electric cars in Poland were owned by private individuals The majority of electric cars (68) were owned by businesses47 Of these leasing companies accounted for 50 carsharing companies for 18 and car dealers for 10 The remaining 22 accounted for manufacturer importers car rental companies and others The Law on Electromobility includes specific tax incentives for electric company cars This involves longer depreciation write-offs compared to conventional cars for companies purchasing a vehicle Under the current policy the maximum passenger car value that can be deducted if a company car is used for business purposes is PLN 150000 (euro35000) for combustion engine and hybrid cars For electric cars the amount is significantly higher at PLN 225000 (euro52000)48 In contrast to electric company cars only used for business purposes there are currently no special provisions for employees privately using an electric company car

Electric vehicle parking benefit The Electromobility Law exempts BEV drivers from parking fees in paid public parking zones The city of Szczecin already introduced preferential parking fees for

47 Krzyczkowska Zuzanna ldquoThere are already 10000 electric cars on Polish roads When will there be a millionrdquo Motopl 14 January 2020 httpsmotoplMotoPL78838925597232na-polskich-drogach-jest-juz-10-tysiecy-samochodow-elektrycznychhtml

48 PwC Doing business in Poland 2019 (2019) httpswwwpwcplplpdfdoing-bussiness-in-poland-2019pdf

11 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

low-emission vehicles in 2014 allowing owners of an electric or hybrid car emitting up to 100 g CO2km to buy a 12-month subscription for parking in the inner-city paid parking zone for PLN 10 (euro200)49 Reduced parking fees in other cities range from PLN 2 (euro050) per hour in the city of Wrocław50 to euro5 for 3-hour parking in Poznań51 Some cities also offer reduced parking fees for PHEVs such as the cities of Krakoacutew52 and Poznań53

Electric vehicle access benefit (national) According to the Electromobility Law local governments must allow BEV drivers access to bus lanes although cities can enact requirements on minimum occupancy to limit this access In addition the law gives local authorities a legal basis to implement clean transport zones (CTZs) allowing access to electric vehicles (BEVs FCEVs) and gas-powered vehicles (CNGs LPGs) only Despite the exclusion of PHEVs by definition municipalities can expand the catalogue of allowed vehicles to include PHEVs According to the law a CTZ can also only be established in city centers of cities with more than 100000 inhabitants A monetary penalty on non-compliant vehicles can be imposed and used for the purpose of marking the CTZs purchasing of zero-emission buses and covering the costs of performing analyses The maximum penalty for non-compliant vehicles cannot exceed PLN 250 PLN (euro050) per hour according to the law54 However the current regulations are too vague to be implemented by the municipalities and the government is therefore working on changing and specifying these regulations55 To date a CTZ has only been introduced in Krakoacutew starting in January 2019 However due to appeals of business owners living within the zone almost all constraints for combustion-engine vehicles in the zone have been abolished56 The city of Poznań performed a public consultation about the development of electromobility in the city between April and May 2020 including proposals for the introduction of a CTZ57

Electric vehicle charging benefit (local)In Poland no city offers a comprehensive network of free charging options for electric vehicles at city owned or managed public parking spaces Yet this policy is a common measure in the early electric vehicle transition stage in cities outside Poland such as

49 City Council of Szczecin ldquoCity Council of Szczecin of 26 May 2014 on the announcement of the consolidated text of the resolution on the establishment of a paid parking zone fees for parking vehicles on the public roads of the City of Szczecin and the way of collecting themrdquo (26 May 2014) httpssppszczecinplplikiuchwala-jtpdf

50 Wroclaw Paid parking zone (23 July 2019) httpswwwwroclawplenpaid-parking-zone 51 Telewizja ldquoThe last day of cheap parking in Poznanrdquo (29 May 2020) httpspoznantvppl48288715ostatni-

dzien-taniego-parkowania-w-poznaniu 52 Dziennik Urzędowy Wojewoacutedztwa Małopolskiego [Official journal province of Malopolska] Uchwala Nr

XXII45619 Rady Miasta Krakowa z dnia 17 lipca 2019 roku w sprawie zmiany uchwały Nr LXXXIX217717 Rady Miasta Krakowa z dnia 22 listopada 2017 r w sprawie ustalenia strefy płatnego parkowania ustalenia opłat za postoacutej pojazdoacutew samochodowych na drogach publicznych w strefie płatnego parkowania wprowadzenia opłaty abonamentowej dla niektoacuterych użytkownikoacutew droacuteg oraz sposobu pobierania tych opłat [Resolution No XXII45619 KRAKOW City Council of 17 July 2019 on the amendment of Resolution No LXXXIX217717 of the Krakow City Council of 22 November 2017 on the establishment of a paid parking zone the establishment of parking fees for motor vehicles on public roads in the paid parking zone the introduction of a subscription fee for certain road users and the method of collecting these fees] (17 July 2019) httpmikrakowplpdfakty-prawneuchwala-nr-xxii45619pdf

53 Telewizja ldquoThe last day of cheap parking in Poznanrdquo54 Law of 11 January 2018 on Electromobility and Alternative Fuels version from May 22 2020 Journal of Laws

httpssiplexplakty-prawnedzu-dziennik-ustawelektromobilnosc-i-paliwa-alternatywne-18683445 55 Łukasz Dubiński ldquoClean transport zones (administrative and legal analysis)rdquo (3 July 2019) httpswwwcirepl

item182937200000strefy-czystego-transportu-analiza-administracyjno-prawnahtml56 Municipal Krakow ABC of clean transport zone in Kazimierz (19 February 2019) httpswwwkrakowplaktual

nosci22658529komunikatabc_strefy_czystego_transportu_na_kazimierzuhtml Municipal Krakow ldquoWhat is left of the Clean Transport Zone in Kazimierzrdquo (6 March 2019) httpswww krakowplaktualnosci22793526komunikatco_zostalo_ze_strefy_czystego_transportu_na_kazimierzuhtml

57 Poznan City Hall ldquoPublic consultation on the draft Strategy for Electromobility Development for the City of Poznań until 2035 - INTERNET CONSULTATIONrdquo (2020) httpswwwpoznanplmimkonsultujemykonsultacje-spoleczne-dotyczace-strategii-rozwoju-elektromobilnosci-dla-miasta-poznania-do-roku-2035-konsultacje-internetowep381173812552515html

12 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Oslo and Paris58 There are selected programs such as in Warsaw where drivers of an electric vehicle can charge their car for free in one out of five assigned car parks if the driver possesses an ECO card59 An increasing number of retailers are also offering free charging at semi-public spaces

Public electric vehicle procurement (nationallocal)The Law on Electromobility also sets fleet and procurement targets for electric vehicles For the central administrationrsquos car fleet which includes government ministries at least 10 of the fleet is required to be comprised of electric vehicles from 2022 and at least 20 electric vehicles are required from 2023 The target for the share of electric vehicles in the fleets of local administrations with more than 50000 inhabitants is 10 by 2022 In addition the law sets targets for other vehicles in addition to passenger cars For example the target for zero-emission buses is 5 by 2021 10 by 2023 and 20 by 2025 in cities with more than 50000 inhabitants

To reach these targets local governments across Poland are beginning to introduce electric vehicles to their municipal fleets In terms of passenger cars the city council of Warsaw opened a tender in late 2019 to lease the first 16 electric cars for its municipal fleet60 In mid-2019 the city council of Wrocław added eight electric cars to its municipal fleet61 Krakoacutew ordered 47 electric cars in the end of 2019 which will be rented over a three year period62 The city of Poznań tested three electric and natural gas vehicles in early 202063 The municipal of Szczecin had just over 10 electric cars in its fleet in mid-201964

Policies driving charging infrastructure deployment Building the necessary charging infrastructure increasing consumerrsquos accessibility and addressing potential barriers is crucial in the transition to electric vehicles This includes public charging as well as the possibility to charge an electric car at home or at workplaces

Charging infrastructure goals (national)The National Framework for Alternative Fuels Infrastructure Development Policy includes a target of 6000 publicly accessible normal charging points and 400 fast charging points by the end of 202065 which is likely to be delayed by one year due to the impacts of the COVID-19 pandemic In comparison the German government has

58 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsEV_city_policies_white_paper_fv_20200224pdf

59 City Warsaw P+R car parks (21 May 2020) httpswarszawa19115pl-parkingi-p-r 60 Editorial Office in Warsaw ldquoTown hall invests in electric cars Officials will drive them for 5 yearsrdquo (12 January

2020) httpswarszawanaszemiastoplratusz-inwestuje-w-samochody-elektryczne-urzednicy-bedaarc1-7501377

61 Janusz Krzeszowski ldquoEco-friendly Nissan will replace the most worn-out combustion cars in the officerdquo (30 May 2019) httpswwwwroclawplsrodowiskoekologiczne-nissany-auta-elektryczne-w-urzedzie-miejskim-wroclawia

62 Wojciech Kwinta ldquoThe first electric cars for Krakow municipal institutions are already hererdquo inzynieriacom 3 November 2019 httpsinzynieriacomenergetykawiadomosci56970pierwsze-samochody-elektryczne-dla-krakowskich-instytucji-miejskich-juz-sa

63 Poznan City Hall ldquoThe city of Poznań is testing electric carsrdquo (3 February 2020) httpswwwpoznanplmiminfonewsmiasto-poznan-testuje-elektryczne-samochody143016html

64 Marcin Gigiel ldquoPresident Krzystek will use a company electric carrdquo (19 April 2019) httpswszczecinieplaktualnosciprezydent_krzystek_bedzie_korzystal_ze_sluzbowego_samochodu_elektrycznegoid-31640html

65 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

13 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

been funding the deployment of publicly accessible charging stations over the past years with the aim to install at least 15000 by the end of 202066

The Law on Electromobility also specifies goals for the roll-out of the alternative-fuels infrastructure in cities including charging stations for electric vehicles Deployment targets depend on the population number of registered cars and the level of motorization According to the law by the end of 2020 there must be 1000 publicly available electric car charging stations available in cities with more than 1 million inhabitants where at least 600000 motor vehicles have been registered and where the motorization level is at least 700 motor vehicles per 1000 inhabitants The number of envisaged public charging stations gradually decreases to 60 in cities with more than 100000 inhabitants at least 60000 vehicles on the roads and at least 400 vehicles per 1000 inhabitants Apart from city targets the legislation also considers the provision of charging infrastructure on main transit routes without specifying target figures

Charging infrastructure promotion (nationallocal)As part of the incentive schemes for BEVs introduced by the Polish government at the end of June 2020 aid is also provided for installing charging infrastructure when purchasing or leasing a new car Businesses purchasing or leasing a zero-emission van under the national eVAN support program can receive 50 of the eligible costs at a maximum aid of PLN 5000 (euro1200) for a charging point up to 22 kW Micro small and medium-sized businesses purchasing or leasing a passenger car as part of the Koliber program can claim 20 of the eligible cost for a charging point up to 22 kW but no more than PLN 25000 (euro5800)67

Outside of national funding for charging points in the business and workplace context there are no specific schemes targeting public and private charging options On a local level there are also no support programs offered by the authorities at current

Electric vehicle ready building codes (nationallocal)According to the Law on Electromobility parking spaces in all newly built public and multi-family buildings shall be equipped with electrical wiring for charging capacities of at least 37 kW This applies to new developments in municipalities with over 100000 inhabitants where more than 60000 vehicles are registered and where the motorization rate is at least 400 cars per 1000 inhabitants Beyond the Law on Electromobility there are currently no implementation provisions which specify the share or number of parking spaces to be equipped A draft ordinance by the Minister of Energy published in May 2019 suggests for public buildings a minimum connection capacity of 20 of the planned number of parking spaces and 37 kW For multi-family buildings the minimum connection capacity is 100 of the planned number of parking spaces and 37 kilowatts kW68 The draft regulation is still in consultation

Beyond the national regulations there are no specific or additional local-level laws

66 Federal Ministry of Transport and Digital Infrastructure ldquoFunding guideline for charging infrastructure for electric vehiclesrdquo (2020) httpswwwbmvideSharedDocsDEArtikelGfoerderrichtlinie-ladeinfrastruktur-elektrofahrzeugehtml

67 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo

68 Minister of Energy Projekt z dnia 25 kwietnia 2019 r Rozporządzenie Ministra Energii z dnia hellip w sprawie sposobu ustalania mocy przyłączeniowej dla wewnętrznych i zewnętrznych stanowisk postojowych związanych z budynkami użyteczności publicznej oraz budynkami mieszkalnymi wielorodzinnymi (Draft of 25 April 2019 Management Minister of Energy from the day on the method of determining the connection capacity for internal and external parking spaces related to public buildings and multi-family residential buildings) (25 April 2019) httpslegislacjarclgovpldocs567123217531259125812591259dokument394845pdf

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 9: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

9 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

the end consumer price was 58 and 54 respectively in July 202037 Taxes on fuels in Poland consist of a 23 VAT an excise tax of PLN 1520 (euro035) per 1000 liters for gasoline fuel and PLN 1151 (euro027) for diesel fuel and a fuel tax The fuel tax rates are PLN 15549 (euro36) for 1000 liters of gasoline and PLN 32334 (euro75) per 1000 liters of diesel38 In 2019 an emission surcharge of PLN 80 (euro19) per 1000 liters fuel (gasoline and diesel) was introduced to finance among others the development of electromobility in Poland39 In terms of electricity costs for charging an electric car households consuming between 5000 and 15000 kWh electricity per year paid about 18 tax on the end consumer price based on average prices for the second half of 201940

Excursus Effects of incentives and tax breaks on vehicle costsFigure 5 shows the effects of taxes tax breaks and one-time purchase incentives on the total cost of ownership for newly purchased cars For comparison we choose the gasoline and diesel versions of the Volkswagen Golf the best-selling passenger car model in the EU41 and the battery electric Nissan Leaf one of the few BEVs available in Poland that is eligible for a bonus The costs are shown over a period of 4 years discounted at 6 for annual cost components and assume private holders similar to previous studies42 In the absence of registration and ownership taxes the cost comparison includes the one-time costs of car purchase (base price VAT excise duty registration fee) and fuel costs differentiated by pre-tax and taxed price Information on fuel consumption is based on the New European Driving Cycle (NEDC) To reflect vehicle real-world consumption for fuel cost calculation we apply an adjustment factor of 137 for gasoline cars and 145 for diesel to the NEDC fuel consumption and energy consumption values43 Fuel prices as of July 6 202044 were used and electricity prices for household consumers with a consumption between 5000 and 15000 kWh were applied based on average prices in Poland in the second half of 2019 and the assumption that private holders charge their electric car at home45 Due to lack of data on average distance travelled in Poland per year we assume 13000 km46

37 European Commission Total taxation share in the end consumer price for Euro-Super 95 and diesel oil (25 May 2020) httpeceuropaeuenergymapsmaps_weekly_oil_bulletinlatest_taxation_oil_pricespdf

38 Minister Infrastruktury ldquoObwieszczenie ministra Infrastruktury z dnia 25 lutego 2020 r zmieniające obwieszczenie w sprawie wysokości stawki opłaty paliwowej na rok 2020 (Notice infrastructure minister of February 25 2020 amending the notice on the amount of the fuel surcharge rate for 2020)rdquo (25 February 2020) httpisapsejmgovplisapnsfdownloadxspWMP20200000211OM20200211pdf

39 Kancelaria Sejmu ldquoUSTAWA z dnia 27 kwietnia 2001 r Prawo ochrony środowiska (ACT of 27 April 2001 Environmental Protection Law)rdquo (27 April 2020) httpisapsejmgovplisapnsfdownloadxspWDU20010620627UD20010627Ljpdf

40 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

41 Peter Mock European vehicle market statistics 20192020 42 Sandra Wappelhorst Peter Mock ed and Zifei Yang Using vehicle taxation policy to lower transport emissions

An overview for passenger cars in Europe (ICCT Washington DC 2018) httpstheicctorgsitesdefaultfilespublicationsEU_vehicle_taxation_Report_20181214_0pdf

43 Uwe Tietge Sonsoles Diacuteaz Peter Mock John German Anup Bandivadekar and Norbert Ligterink From laboratory to road ndash A 2016 update of official and lsquoreal-worldrsquo fuel consumption and CO2 values for passenger cars in Europe (ICCT Washington DC 2016) httpswwwtheicctorgsitesdefaultfilespublicationsICCT_LaboratoryToRoad_2016pdf

44 EC ndash European Commission Weekly Oil Bulletin (2020) httpseceuropaeuenergydata-analysisweekly-oil-bulletin_enredir=1

45 Eurostat Electricity prices for household consumers ndash bi-annual data (from 2007 onwards) (28 April 2020) httpseceuropaeueurostatstatistics-explainedindexphpElectricity_price_statisticsElectricity_prices_for_household_consumers

46 ACEA ndash European Automobile Manufacturerrsquos Association ldquoACEA Report Vehicles in use Europe 2018rdquo (2018) httpswwwaceabeuploadsstatistic_documentsACEA_Report_Vehicles_in_use-Europe_2018pdf

10 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

euro0

euro5000

euro10000

euro15000

euro20000

euro25000

euro30000

euro35000

4-y

ear

cons

umer

ow

ners

hip

co

sts

Bonus

Fuelelectricity (tax)

Fuelelectricity (pre-tax)

Registration fee

Excise duty

Value added tax

Base price

4-year costs

GasolineVolkswagen Golf

(110 kW 1498 cm3)

DieselVolkswagen Golf

(110 kW 1968 cm3)

BEVNissan Leaf

(110 kW 0 cm3)

euro4100

Figure 5 Comparison of 4-year consumer ownership costs for a gasoline and diesel Volkswagen Golf and BEV Nissan Leaf

Based on these assumptions comparing the conventional Volkswagen Golf models with the electric Nissan Leaf shows that the newly introduced bonus payment on car purchase brings the 4-year cost down by about euro4100 or 15 of the gross purchase price for the Nissan Leaf Yet even with the bonus included the Nissan Leaf still has a euro3000 cost disadvantage over the gasoline Volkswagen Golf Over a holding period of 4 years the cost disadvantage remains yet at a smaller level at over euro1000 The reduction is the result of the euro500 excise tax on gasoline and lower electricity costs of about euro1500 over 4 years compared to 4-year gasoline fuel costs of more than euro3000 In contrast compared to the Volkswagen Golf diesel the Nissan Leaf bears almost identical purchase costs and has a cost advantage of euro2000 over four years again due to the one-time bonus and advantages on excise tax and fuel costs

Electric vehicle company car benefit for employers and employees (national)In the end of 2019 only 32 of electric cars in Poland were owned by private individuals The majority of electric cars (68) were owned by businesses47 Of these leasing companies accounted for 50 carsharing companies for 18 and car dealers for 10 The remaining 22 accounted for manufacturer importers car rental companies and others The Law on Electromobility includes specific tax incentives for electric company cars This involves longer depreciation write-offs compared to conventional cars for companies purchasing a vehicle Under the current policy the maximum passenger car value that can be deducted if a company car is used for business purposes is PLN 150000 (euro35000) for combustion engine and hybrid cars For electric cars the amount is significantly higher at PLN 225000 (euro52000)48 In contrast to electric company cars only used for business purposes there are currently no special provisions for employees privately using an electric company car

Electric vehicle parking benefit The Electromobility Law exempts BEV drivers from parking fees in paid public parking zones The city of Szczecin already introduced preferential parking fees for

47 Krzyczkowska Zuzanna ldquoThere are already 10000 electric cars on Polish roads When will there be a millionrdquo Motopl 14 January 2020 httpsmotoplMotoPL78838925597232na-polskich-drogach-jest-juz-10-tysiecy-samochodow-elektrycznychhtml

48 PwC Doing business in Poland 2019 (2019) httpswwwpwcplplpdfdoing-bussiness-in-poland-2019pdf

11 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

low-emission vehicles in 2014 allowing owners of an electric or hybrid car emitting up to 100 g CO2km to buy a 12-month subscription for parking in the inner-city paid parking zone for PLN 10 (euro200)49 Reduced parking fees in other cities range from PLN 2 (euro050) per hour in the city of Wrocław50 to euro5 for 3-hour parking in Poznań51 Some cities also offer reduced parking fees for PHEVs such as the cities of Krakoacutew52 and Poznań53

Electric vehicle access benefit (national) According to the Electromobility Law local governments must allow BEV drivers access to bus lanes although cities can enact requirements on minimum occupancy to limit this access In addition the law gives local authorities a legal basis to implement clean transport zones (CTZs) allowing access to electric vehicles (BEVs FCEVs) and gas-powered vehicles (CNGs LPGs) only Despite the exclusion of PHEVs by definition municipalities can expand the catalogue of allowed vehicles to include PHEVs According to the law a CTZ can also only be established in city centers of cities with more than 100000 inhabitants A monetary penalty on non-compliant vehicles can be imposed and used for the purpose of marking the CTZs purchasing of zero-emission buses and covering the costs of performing analyses The maximum penalty for non-compliant vehicles cannot exceed PLN 250 PLN (euro050) per hour according to the law54 However the current regulations are too vague to be implemented by the municipalities and the government is therefore working on changing and specifying these regulations55 To date a CTZ has only been introduced in Krakoacutew starting in January 2019 However due to appeals of business owners living within the zone almost all constraints for combustion-engine vehicles in the zone have been abolished56 The city of Poznań performed a public consultation about the development of electromobility in the city between April and May 2020 including proposals for the introduction of a CTZ57

Electric vehicle charging benefit (local)In Poland no city offers a comprehensive network of free charging options for electric vehicles at city owned or managed public parking spaces Yet this policy is a common measure in the early electric vehicle transition stage in cities outside Poland such as

49 City Council of Szczecin ldquoCity Council of Szczecin of 26 May 2014 on the announcement of the consolidated text of the resolution on the establishment of a paid parking zone fees for parking vehicles on the public roads of the City of Szczecin and the way of collecting themrdquo (26 May 2014) httpssppszczecinplplikiuchwala-jtpdf

50 Wroclaw Paid parking zone (23 July 2019) httpswwwwroclawplenpaid-parking-zone 51 Telewizja ldquoThe last day of cheap parking in Poznanrdquo (29 May 2020) httpspoznantvppl48288715ostatni-

dzien-taniego-parkowania-w-poznaniu 52 Dziennik Urzędowy Wojewoacutedztwa Małopolskiego [Official journal province of Malopolska] Uchwala Nr

XXII45619 Rady Miasta Krakowa z dnia 17 lipca 2019 roku w sprawie zmiany uchwały Nr LXXXIX217717 Rady Miasta Krakowa z dnia 22 listopada 2017 r w sprawie ustalenia strefy płatnego parkowania ustalenia opłat za postoacutej pojazdoacutew samochodowych na drogach publicznych w strefie płatnego parkowania wprowadzenia opłaty abonamentowej dla niektoacuterych użytkownikoacutew droacuteg oraz sposobu pobierania tych opłat [Resolution No XXII45619 KRAKOW City Council of 17 July 2019 on the amendment of Resolution No LXXXIX217717 of the Krakow City Council of 22 November 2017 on the establishment of a paid parking zone the establishment of parking fees for motor vehicles on public roads in the paid parking zone the introduction of a subscription fee for certain road users and the method of collecting these fees] (17 July 2019) httpmikrakowplpdfakty-prawneuchwala-nr-xxii45619pdf

53 Telewizja ldquoThe last day of cheap parking in Poznanrdquo54 Law of 11 January 2018 on Electromobility and Alternative Fuels version from May 22 2020 Journal of Laws

httpssiplexplakty-prawnedzu-dziennik-ustawelektromobilnosc-i-paliwa-alternatywne-18683445 55 Łukasz Dubiński ldquoClean transport zones (administrative and legal analysis)rdquo (3 July 2019) httpswwwcirepl

item182937200000strefy-czystego-transportu-analiza-administracyjno-prawnahtml56 Municipal Krakow ABC of clean transport zone in Kazimierz (19 February 2019) httpswwwkrakowplaktual

nosci22658529komunikatabc_strefy_czystego_transportu_na_kazimierzuhtml Municipal Krakow ldquoWhat is left of the Clean Transport Zone in Kazimierzrdquo (6 March 2019) httpswww krakowplaktualnosci22793526komunikatco_zostalo_ze_strefy_czystego_transportu_na_kazimierzuhtml

57 Poznan City Hall ldquoPublic consultation on the draft Strategy for Electromobility Development for the City of Poznań until 2035 - INTERNET CONSULTATIONrdquo (2020) httpswwwpoznanplmimkonsultujemykonsultacje-spoleczne-dotyczace-strategii-rozwoju-elektromobilnosci-dla-miasta-poznania-do-roku-2035-konsultacje-internetowep381173812552515html

12 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Oslo and Paris58 There are selected programs such as in Warsaw where drivers of an electric vehicle can charge their car for free in one out of five assigned car parks if the driver possesses an ECO card59 An increasing number of retailers are also offering free charging at semi-public spaces

Public electric vehicle procurement (nationallocal)The Law on Electromobility also sets fleet and procurement targets for electric vehicles For the central administrationrsquos car fleet which includes government ministries at least 10 of the fleet is required to be comprised of electric vehicles from 2022 and at least 20 electric vehicles are required from 2023 The target for the share of electric vehicles in the fleets of local administrations with more than 50000 inhabitants is 10 by 2022 In addition the law sets targets for other vehicles in addition to passenger cars For example the target for zero-emission buses is 5 by 2021 10 by 2023 and 20 by 2025 in cities with more than 50000 inhabitants

To reach these targets local governments across Poland are beginning to introduce electric vehicles to their municipal fleets In terms of passenger cars the city council of Warsaw opened a tender in late 2019 to lease the first 16 electric cars for its municipal fleet60 In mid-2019 the city council of Wrocław added eight electric cars to its municipal fleet61 Krakoacutew ordered 47 electric cars in the end of 2019 which will be rented over a three year period62 The city of Poznań tested three electric and natural gas vehicles in early 202063 The municipal of Szczecin had just over 10 electric cars in its fleet in mid-201964

Policies driving charging infrastructure deployment Building the necessary charging infrastructure increasing consumerrsquos accessibility and addressing potential barriers is crucial in the transition to electric vehicles This includes public charging as well as the possibility to charge an electric car at home or at workplaces

Charging infrastructure goals (national)The National Framework for Alternative Fuels Infrastructure Development Policy includes a target of 6000 publicly accessible normal charging points and 400 fast charging points by the end of 202065 which is likely to be delayed by one year due to the impacts of the COVID-19 pandemic In comparison the German government has

58 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsEV_city_policies_white_paper_fv_20200224pdf

59 City Warsaw P+R car parks (21 May 2020) httpswarszawa19115pl-parkingi-p-r 60 Editorial Office in Warsaw ldquoTown hall invests in electric cars Officials will drive them for 5 yearsrdquo (12 January

2020) httpswarszawanaszemiastoplratusz-inwestuje-w-samochody-elektryczne-urzednicy-bedaarc1-7501377

61 Janusz Krzeszowski ldquoEco-friendly Nissan will replace the most worn-out combustion cars in the officerdquo (30 May 2019) httpswwwwroclawplsrodowiskoekologiczne-nissany-auta-elektryczne-w-urzedzie-miejskim-wroclawia

62 Wojciech Kwinta ldquoThe first electric cars for Krakow municipal institutions are already hererdquo inzynieriacom 3 November 2019 httpsinzynieriacomenergetykawiadomosci56970pierwsze-samochody-elektryczne-dla-krakowskich-instytucji-miejskich-juz-sa

63 Poznan City Hall ldquoThe city of Poznań is testing electric carsrdquo (3 February 2020) httpswwwpoznanplmiminfonewsmiasto-poznan-testuje-elektryczne-samochody143016html

64 Marcin Gigiel ldquoPresident Krzystek will use a company electric carrdquo (19 April 2019) httpswszczecinieplaktualnosciprezydent_krzystek_bedzie_korzystal_ze_sluzbowego_samochodu_elektrycznegoid-31640html

65 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

13 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

been funding the deployment of publicly accessible charging stations over the past years with the aim to install at least 15000 by the end of 202066

The Law on Electromobility also specifies goals for the roll-out of the alternative-fuels infrastructure in cities including charging stations for electric vehicles Deployment targets depend on the population number of registered cars and the level of motorization According to the law by the end of 2020 there must be 1000 publicly available electric car charging stations available in cities with more than 1 million inhabitants where at least 600000 motor vehicles have been registered and where the motorization level is at least 700 motor vehicles per 1000 inhabitants The number of envisaged public charging stations gradually decreases to 60 in cities with more than 100000 inhabitants at least 60000 vehicles on the roads and at least 400 vehicles per 1000 inhabitants Apart from city targets the legislation also considers the provision of charging infrastructure on main transit routes without specifying target figures

Charging infrastructure promotion (nationallocal)As part of the incentive schemes for BEVs introduced by the Polish government at the end of June 2020 aid is also provided for installing charging infrastructure when purchasing or leasing a new car Businesses purchasing or leasing a zero-emission van under the national eVAN support program can receive 50 of the eligible costs at a maximum aid of PLN 5000 (euro1200) for a charging point up to 22 kW Micro small and medium-sized businesses purchasing or leasing a passenger car as part of the Koliber program can claim 20 of the eligible cost for a charging point up to 22 kW but no more than PLN 25000 (euro5800)67

Outside of national funding for charging points in the business and workplace context there are no specific schemes targeting public and private charging options On a local level there are also no support programs offered by the authorities at current

Electric vehicle ready building codes (nationallocal)According to the Law on Electromobility parking spaces in all newly built public and multi-family buildings shall be equipped with electrical wiring for charging capacities of at least 37 kW This applies to new developments in municipalities with over 100000 inhabitants where more than 60000 vehicles are registered and where the motorization rate is at least 400 cars per 1000 inhabitants Beyond the Law on Electromobility there are currently no implementation provisions which specify the share or number of parking spaces to be equipped A draft ordinance by the Minister of Energy published in May 2019 suggests for public buildings a minimum connection capacity of 20 of the planned number of parking spaces and 37 kW For multi-family buildings the minimum connection capacity is 100 of the planned number of parking spaces and 37 kilowatts kW68 The draft regulation is still in consultation

Beyond the national regulations there are no specific or additional local-level laws

66 Federal Ministry of Transport and Digital Infrastructure ldquoFunding guideline for charging infrastructure for electric vehiclesrdquo (2020) httpswwwbmvideSharedDocsDEArtikelGfoerderrichtlinie-ladeinfrastruktur-elektrofahrzeugehtml

67 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo

68 Minister of Energy Projekt z dnia 25 kwietnia 2019 r Rozporządzenie Ministra Energii z dnia hellip w sprawie sposobu ustalania mocy przyłączeniowej dla wewnętrznych i zewnętrznych stanowisk postojowych związanych z budynkami użyteczności publicznej oraz budynkami mieszkalnymi wielorodzinnymi (Draft of 25 April 2019 Management Minister of Energy from the day on the method of determining the connection capacity for internal and external parking spaces related to public buildings and multi-family residential buildings) (25 April 2019) httpslegislacjarclgovpldocs567123217531259125812591259dokument394845pdf

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 10: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

10 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

euro0

euro5000

euro10000

euro15000

euro20000

euro25000

euro30000

euro35000

4-y

ear

cons

umer

ow

ners

hip

co

sts

Bonus

Fuelelectricity (tax)

Fuelelectricity (pre-tax)

Registration fee

Excise duty

Value added tax

Base price

4-year costs

GasolineVolkswagen Golf

(110 kW 1498 cm3)

DieselVolkswagen Golf

(110 kW 1968 cm3)

BEVNissan Leaf

(110 kW 0 cm3)

euro4100

Figure 5 Comparison of 4-year consumer ownership costs for a gasoline and diesel Volkswagen Golf and BEV Nissan Leaf

Based on these assumptions comparing the conventional Volkswagen Golf models with the electric Nissan Leaf shows that the newly introduced bonus payment on car purchase brings the 4-year cost down by about euro4100 or 15 of the gross purchase price for the Nissan Leaf Yet even with the bonus included the Nissan Leaf still has a euro3000 cost disadvantage over the gasoline Volkswagen Golf Over a holding period of 4 years the cost disadvantage remains yet at a smaller level at over euro1000 The reduction is the result of the euro500 excise tax on gasoline and lower electricity costs of about euro1500 over 4 years compared to 4-year gasoline fuel costs of more than euro3000 In contrast compared to the Volkswagen Golf diesel the Nissan Leaf bears almost identical purchase costs and has a cost advantage of euro2000 over four years again due to the one-time bonus and advantages on excise tax and fuel costs

Electric vehicle company car benefit for employers and employees (national)In the end of 2019 only 32 of electric cars in Poland were owned by private individuals The majority of electric cars (68) were owned by businesses47 Of these leasing companies accounted for 50 carsharing companies for 18 and car dealers for 10 The remaining 22 accounted for manufacturer importers car rental companies and others The Law on Electromobility includes specific tax incentives for electric company cars This involves longer depreciation write-offs compared to conventional cars for companies purchasing a vehicle Under the current policy the maximum passenger car value that can be deducted if a company car is used for business purposes is PLN 150000 (euro35000) for combustion engine and hybrid cars For electric cars the amount is significantly higher at PLN 225000 (euro52000)48 In contrast to electric company cars only used for business purposes there are currently no special provisions for employees privately using an electric company car

Electric vehicle parking benefit The Electromobility Law exempts BEV drivers from parking fees in paid public parking zones The city of Szczecin already introduced preferential parking fees for

47 Krzyczkowska Zuzanna ldquoThere are already 10000 electric cars on Polish roads When will there be a millionrdquo Motopl 14 January 2020 httpsmotoplMotoPL78838925597232na-polskich-drogach-jest-juz-10-tysiecy-samochodow-elektrycznychhtml

48 PwC Doing business in Poland 2019 (2019) httpswwwpwcplplpdfdoing-bussiness-in-poland-2019pdf

11 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

low-emission vehicles in 2014 allowing owners of an electric or hybrid car emitting up to 100 g CO2km to buy a 12-month subscription for parking in the inner-city paid parking zone for PLN 10 (euro200)49 Reduced parking fees in other cities range from PLN 2 (euro050) per hour in the city of Wrocław50 to euro5 for 3-hour parking in Poznań51 Some cities also offer reduced parking fees for PHEVs such as the cities of Krakoacutew52 and Poznań53

Electric vehicle access benefit (national) According to the Electromobility Law local governments must allow BEV drivers access to bus lanes although cities can enact requirements on minimum occupancy to limit this access In addition the law gives local authorities a legal basis to implement clean transport zones (CTZs) allowing access to electric vehicles (BEVs FCEVs) and gas-powered vehicles (CNGs LPGs) only Despite the exclusion of PHEVs by definition municipalities can expand the catalogue of allowed vehicles to include PHEVs According to the law a CTZ can also only be established in city centers of cities with more than 100000 inhabitants A monetary penalty on non-compliant vehicles can be imposed and used for the purpose of marking the CTZs purchasing of zero-emission buses and covering the costs of performing analyses The maximum penalty for non-compliant vehicles cannot exceed PLN 250 PLN (euro050) per hour according to the law54 However the current regulations are too vague to be implemented by the municipalities and the government is therefore working on changing and specifying these regulations55 To date a CTZ has only been introduced in Krakoacutew starting in January 2019 However due to appeals of business owners living within the zone almost all constraints for combustion-engine vehicles in the zone have been abolished56 The city of Poznań performed a public consultation about the development of electromobility in the city between April and May 2020 including proposals for the introduction of a CTZ57

Electric vehicle charging benefit (local)In Poland no city offers a comprehensive network of free charging options for electric vehicles at city owned or managed public parking spaces Yet this policy is a common measure in the early electric vehicle transition stage in cities outside Poland such as

49 City Council of Szczecin ldquoCity Council of Szczecin of 26 May 2014 on the announcement of the consolidated text of the resolution on the establishment of a paid parking zone fees for parking vehicles on the public roads of the City of Szczecin and the way of collecting themrdquo (26 May 2014) httpssppszczecinplplikiuchwala-jtpdf

50 Wroclaw Paid parking zone (23 July 2019) httpswwwwroclawplenpaid-parking-zone 51 Telewizja ldquoThe last day of cheap parking in Poznanrdquo (29 May 2020) httpspoznantvppl48288715ostatni-

dzien-taniego-parkowania-w-poznaniu 52 Dziennik Urzędowy Wojewoacutedztwa Małopolskiego [Official journal province of Malopolska] Uchwala Nr

XXII45619 Rady Miasta Krakowa z dnia 17 lipca 2019 roku w sprawie zmiany uchwały Nr LXXXIX217717 Rady Miasta Krakowa z dnia 22 listopada 2017 r w sprawie ustalenia strefy płatnego parkowania ustalenia opłat za postoacutej pojazdoacutew samochodowych na drogach publicznych w strefie płatnego parkowania wprowadzenia opłaty abonamentowej dla niektoacuterych użytkownikoacutew droacuteg oraz sposobu pobierania tych opłat [Resolution No XXII45619 KRAKOW City Council of 17 July 2019 on the amendment of Resolution No LXXXIX217717 of the Krakow City Council of 22 November 2017 on the establishment of a paid parking zone the establishment of parking fees for motor vehicles on public roads in the paid parking zone the introduction of a subscription fee for certain road users and the method of collecting these fees] (17 July 2019) httpmikrakowplpdfakty-prawneuchwala-nr-xxii45619pdf

53 Telewizja ldquoThe last day of cheap parking in Poznanrdquo54 Law of 11 January 2018 on Electromobility and Alternative Fuels version from May 22 2020 Journal of Laws

httpssiplexplakty-prawnedzu-dziennik-ustawelektromobilnosc-i-paliwa-alternatywne-18683445 55 Łukasz Dubiński ldquoClean transport zones (administrative and legal analysis)rdquo (3 July 2019) httpswwwcirepl

item182937200000strefy-czystego-transportu-analiza-administracyjno-prawnahtml56 Municipal Krakow ABC of clean transport zone in Kazimierz (19 February 2019) httpswwwkrakowplaktual

nosci22658529komunikatabc_strefy_czystego_transportu_na_kazimierzuhtml Municipal Krakow ldquoWhat is left of the Clean Transport Zone in Kazimierzrdquo (6 March 2019) httpswww krakowplaktualnosci22793526komunikatco_zostalo_ze_strefy_czystego_transportu_na_kazimierzuhtml

57 Poznan City Hall ldquoPublic consultation on the draft Strategy for Electromobility Development for the City of Poznań until 2035 - INTERNET CONSULTATIONrdquo (2020) httpswwwpoznanplmimkonsultujemykonsultacje-spoleczne-dotyczace-strategii-rozwoju-elektromobilnosci-dla-miasta-poznania-do-roku-2035-konsultacje-internetowep381173812552515html

12 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Oslo and Paris58 There are selected programs such as in Warsaw where drivers of an electric vehicle can charge their car for free in one out of five assigned car parks if the driver possesses an ECO card59 An increasing number of retailers are also offering free charging at semi-public spaces

Public electric vehicle procurement (nationallocal)The Law on Electromobility also sets fleet and procurement targets for electric vehicles For the central administrationrsquos car fleet which includes government ministries at least 10 of the fleet is required to be comprised of electric vehicles from 2022 and at least 20 electric vehicles are required from 2023 The target for the share of electric vehicles in the fleets of local administrations with more than 50000 inhabitants is 10 by 2022 In addition the law sets targets for other vehicles in addition to passenger cars For example the target for zero-emission buses is 5 by 2021 10 by 2023 and 20 by 2025 in cities with more than 50000 inhabitants

To reach these targets local governments across Poland are beginning to introduce electric vehicles to their municipal fleets In terms of passenger cars the city council of Warsaw opened a tender in late 2019 to lease the first 16 electric cars for its municipal fleet60 In mid-2019 the city council of Wrocław added eight electric cars to its municipal fleet61 Krakoacutew ordered 47 electric cars in the end of 2019 which will be rented over a three year period62 The city of Poznań tested three electric and natural gas vehicles in early 202063 The municipal of Szczecin had just over 10 electric cars in its fleet in mid-201964

Policies driving charging infrastructure deployment Building the necessary charging infrastructure increasing consumerrsquos accessibility and addressing potential barriers is crucial in the transition to electric vehicles This includes public charging as well as the possibility to charge an electric car at home or at workplaces

Charging infrastructure goals (national)The National Framework for Alternative Fuels Infrastructure Development Policy includes a target of 6000 publicly accessible normal charging points and 400 fast charging points by the end of 202065 which is likely to be delayed by one year due to the impacts of the COVID-19 pandemic In comparison the German government has

58 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsEV_city_policies_white_paper_fv_20200224pdf

59 City Warsaw P+R car parks (21 May 2020) httpswarszawa19115pl-parkingi-p-r 60 Editorial Office in Warsaw ldquoTown hall invests in electric cars Officials will drive them for 5 yearsrdquo (12 January

2020) httpswarszawanaszemiastoplratusz-inwestuje-w-samochody-elektryczne-urzednicy-bedaarc1-7501377

61 Janusz Krzeszowski ldquoEco-friendly Nissan will replace the most worn-out combustion cars in the officerdquo (30 May 2019) httpswwwwroclawplsrodowiskoekologiczne-nissany-auta-elektryczne-w-urzedzie-miejskim-wroclawia

62 Wojciech Kwinta ldquoThe first electric cars for Krakow municipal institutions are already hererdquo inzynieriacom 3 November 2019 httpsinzynieriacomenergetykawiadomosci56970pierwsze-samochody-elektryczne-dla-krakowskich-instytucji-miejskich-juz-sa

63 Poznan City Hall ldquoThe city of Poznań is testing electric carsrdquo (3 February 2020) httpswwwpoznanplmiminfonewsmiasto-poznan-testuje-elektryczne-samochody143016html

64 Marcin Gigiel ldquoPresident Krzystek will use a company electric carrdquo (19 April 2019) httpswszczecinieplaktualnosciprezydent_krzystek_bedzie_korzystal_ze_sluzbowego_samochodu_elektrycznegoid-31640html

65 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

13 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

been funding the deployment of publicly accessible charging stations over the past years with the aim to install at least 15000 by the end of 202066

The Law on Electromobility also specifies goals for the roll-out of the alternative-fuels infrastructure in cities including charging stations for electric vehicles Deployment targets depend on the population number of registered cars and the level of motorization According to the law by the end of 2020 there must be 1000 publicly available electric car charging stations available in cities with more than 1 million inhabitants where at least 600000 motor vehicles have been registered and where the motorization level is at least 700 motor vehicles per 1000 inhabitants The number of envisaged public charging stations gradually decreases to 60 in cities with more than 100000 inhabitants at least 60000 vehicles on the roads and at least 400 vehicles per 1000 inhabitants Apart from city targets the legislation also considers the provision of charging infrastructure on main transit routes without specifying target figures

Charging infrastructure promotion (nationallocal)As part of the incentive schemes for BEVs introduced by the Polish government at the end of June 2020 aid is also provided for installing charging infrastructure when purchasing or leasing a new car Businesses purchasing or leasing a zero-emission van under the national eVAN support program can receive 50 of the eligible costs at a maximum aid of PLN 5000 (euro1200) for a charging point up to 22 kW Micro small and medium-sized businesses purchasing or leasing a passenger car as part of the Koliber program can claim 20 of the eligible cost for a charging point up to 22 kW but no more than PLN 25000 (euro5800)67

Outside of national funding for charging points in the business and workplace context there are no specific schemes targeting public and private charging options On a local level there are also no support programs offered by the authorities at current

Electric vehicle ready building codes (nationallocal)According to the Law on Electromobility parking spaces in all newly built public and multi-family buildings shall be equipped with electrical wiring for charging capacities of at least 37 kW This applies to new developments in municipalities with over 100000 inhabitants where more than 60000 vehicles are registered and where the motorization rate is at least 400 cars per 1000 inhabitants Beyond the Law on Electromobility there are currently no implementation provisions which specify the share or number of parking spaces to be equipped A draft ordinance by the Minister of Energy published in May 2019 suggests for public buildings a minimum connection capacity of 20 of the planned number of parking spaces and 37 kW For multi-family buildings the minimum connection capacity is 100 of the planned number of parking spaces and 37 kilowatts kW68 The draft regulation is still in consultation

Beyond the national regulations there are no specific or additional local-level laws

66 Federal Ministry of Transport and Digital Infrastructure ldquoFunding guideline for charging infrastructure for electric vehiclesrdquo (2020) httpswwwbmvideSharedDocsDEArtikelGfoerderrichtlinie-ladeinfrastruktur-elektrofahrzeugehtml

67 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo

68 Minister of Energy Projekt z dnia 25 kwietnia 2019 r Rozporządzenie Ministra Energii z dnia hellip w sprawie sposobu ustalania mocy przyłączeniowej dla wewnętrznych i zewnętrznych stanowisk postojowych związanych z budynkami użyteczności publicznej oraz budynkami mieszkalnymi wielorodzinnymi (Draft of 25 April 2019 Management Minister of Energy from the day on the method of determining the connection capacity for internal and external parking spaces related to public buildings and multi-family residential buildings) (25 April 2019) httpslegislacjarclgovpldocs567123217531259125812591259dokument394845pdf

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 11: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

11 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

low-emission vehicles in 2014 allowing owners of an electric or hybrid car emitting up to 100 g CO2km to buy a 12-month subscription for parking in the inner-city paid parking zone for PLN 10 (euro200)49 Reduced parking fees in other cities range from PLN 2 (euro050) per hour in the city of Wrocław50 to euro5 for 3-hour parking in Poznań51 Some cities also offer reduced parking fees for PHEVs such as the cities of Krakoacutew52 and Poznań53

Electric vehicle access benefit (national) According to the Electromobility Law local governments must allow BEV drivers access to bus lanes although cities can enact requirements on minimum occupancy to limit this access In addition the law gives local authorities a legal basis to implement clean transport zones (CTZs) allowing access to electric vehicles (BEVs FCEVs) and gas-powered vehicles (CNGs LPGs) only Despite the exclusion of PHEVs by definition municipalities can expand the catalogue of allowed vehicles to include PHEVs According to the law a CTZ can also only be established in city centers of cities with more than 100000 inhabitants A monetary penalty on non-compliant vehicles can be imposed and used for the purpose of marking the CTZs purchasing of zero-emission buses and covering the costs of performing analyses The maximum penalty for non-compliant vehicles cannot exceed PLN 250 PLN (euro050) per hour according to the law54 However the current regulations are too vague to be implemented by the municipalities and the government is therefore working on changing and specifying these regulations55 To date a CTZ has only been introduced in Krakoacutew starting in January 2019 However due to appeals of business owners living within the zone almost all constraints for combustion-engine vehicles in the zone have been abolished56 The city of Poznań performed a public consultation about the development of electromobility in the city between April and May 2020 including proposals for the introduction of a CTZ57

Electric vehicle charging benefit (local)In Poland no city offers a comprehensive network of free charging options for electric vehicles at city owned or managed public parking spaces Yet this policy is a common measure in the early electric vehicle transition stage in cities outside Poland such as

49 City Council of Szczecin ldquoCity Council of Szczecin of 26 May 2014 on the announcement of the consolidated text of the resolution on the establishment of a paid parking zone fees for parking vehicles on the public roads of the City of Szczecin and the way of collecting themrdquo (26 May 2014) httpssppszczecinplplikiuchwala-jtpdf

50 Wroclaw Paid parking zone (23 July 2019) httpswwwwroclawplenpaid-parking-zone 51 Telewizja ldquoThe last day of cheap parking in Poznanrdquo (29 May 2020) httpspoznantvppl48288715ostatni-

dzien-taniego-parkowania-w-poznaniu 52 Dziennik Urzędowy Wojewoacutedztwa Małopolskiego [Official journal province of Malopolska] Uchwala Nr

XXII45619 Rady Miasta Krakowa z dnia 17 lipca 2019 roku w sprawie zmiany uchwały Nr LXXXIX217717 Rady Miasta Krakowa z dnia 22 listopada 2017 r w sprawie ustalenia strefy płatnego parkowania ustalenia opłat za postoacutej pojazdoacutew samochodowych na drogach publicznych w strefie płatnego parkowania wprowadzenia opłaty abonamentowej dla niektoacuterych użytkownikoacutew droacuteg oraz sposobu pobierania tych opłat [Resolution No XXII45619 KRAKOW City Council of 17 July 2019 on the amendment of Resolution No LXXXIX217717 of the Krakow City Council of 22 November 2017 on the establishment of a paid parking zone the establishment of parking fees for motor vehicles on public roads in the paid parking zone the introduction of a subscription fee for certain road users and the method of collecting these fees] (17 July 2019) httpmikrakowplpdfakty-prawneuchwala-nr-xxii45619pdf

53 Telewizja ldquoThe last day of cheap parking in Poznanrdquo54 Law of 11 January 2018 on Electromobility and Alternative Fuels version from May 22 2020 Journal of Laws

httpssiplexplakty-prawnedzu-dziennik-ustawelektromobilnosc-i-paliwa-alternatywne-18683445 55 Łukasz Dubiński ldquoClean transport zones (administrative and legal analysis)rdquo (3 July 2019) httpswwwcirepl

item182937200000strefy-czystego-transportu-analiza-administracyjno-prawnahtml56 Municipal Krakow ABC of clean transport zone in Kazimierz (19 February 2019) httpswwwkrakowplaktual

nosci22658529komunikatabc_strefy_czystego_transportu_na_kazimierzuhtml Municipal Krakow ldquoWhat is left of the Clean Transport Zone in Kazimierzrdquo (6 March 2019) httpswww krakowplaktualnosci22793526komunikatco_zostalo_ze_strefy_czystego_transportu_na_kazimierzuhtml

57 Poznan City Hall ldquoPublic consultation on the draft Strategy for Electromobility Development for the City of Poznań until 2035 - INTERNET CONSULTATIONrdquo (2020) httpswwwpoznanplmimkonsultujemykonsultacje-spoleczne-dotyczace-strategii-rozwoju-elektromobilnosci-dla-miasta-poznania-do-roku-2035-konsultacje-internetowep381173812552515html

12 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Oslo and Paris58 There are selected programs such as in Warsaw where drivers of an electric vehicle can charge their car for free in one out of five assigned car parks if the driver possesses an ECO card59 An increasing number of retailers are also offering free charging at semi-public spaces

Public electric vehicle procurement (nationallocal)The Law on Electromobility also sets fleet and procurement targets for electric vehicles For the central administrationrsquos car fleet which includes government ministries at least 10 of the fleet is required to be comprised of electric vehicles from 2022 and at least 20 electric vehicles are required from 2023 The target for the share of electric vehicles in the fleets of local administrations with more than 50000 inhabitants is 10 by 2022 In addition the law sets targets for other vehicles in addition to passenger cars For example the target for zero-emission buses is 5 by 2021 10 by 2023 and 20 by 2025 in cities with more than 50000 inhabitants

To reach these targets local governments across Poland are beginning to introduce electric vehicles to their municipal fleets In terms of passenger cars the city council of Warsaw opened a tender in late 2019 to lease the first 16 electric cars for its municipal fleet60 In mid-2019 the city council of Wrocław added eight electric cars to its municipal fleet61 Krakoacutew ordered 47 electric cars in the end of 2019 which will be rented over a three year period62 The city of Poznań tested three electric and natural gas vehicles in early 202063 The municipal of Szczecin had just over 10 electric cars in its fleet in mid-201964

Policies driving charging infrastructure deployment Building the necessary charging infrastructure increasing consumerrsquos accessibility and addressing potential barriers is crucial in the transition to electric vehicles This includes public charging as well as the possibility to charge an electric car at home or at workplaces

Charging infrastructure goals (national)The National Framework for Alternative Fuels Infrastructure Development Policy includes a target of 6000 publicly accessible normal charging points and 400 fast charging points by the end of 202065 which is likely to be delayed by one year due to the impacts of the COVID-19 pandemic In comparison the German government has

58 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsEV_city_policies_white_paper_fv_20200224pdf

59 City Warsaw P+R car parks (21 May 2020) httpswarszawa19115pl-parkingi-p-r 60 Editorial Office in Warsaw ldquoTown hall invests in electric cars Officials will drive them for 5 yearsrdquo (12 January

2020) httpswarszawanaszemiastoplratusz-inwestuje-w-samochody-elektryczne-urzednicy-bedaarc1-7501377

61 Janusz Krzeszowski ldquoEco-friendly Nissan will replace the most worn-out combustion cars in the officerdquo (30 May 2019) httpswwwwroclawplsrodowiskoekologiczne-nissany-auta-elektryczne-w-urzedzie-miejskim-wroclawia

62 Wojciech Kwinta ldquoThe first electric cars for Krakow municipal institutions are already hererdquo inzynieriacom 3 November 2019 httpsinzynieriacomenergetykawiadomosci56970pierwsze-samochody-elektryczne-dla-krakowskich-instytucji-miejskich-juz-sa

63 Poznan City Hall ldquoThe city of Poznań is testing electric carsrdquo (3 February 2020) httpswwwpoznanplmiminfonewsmiasto-poznan-testuje-elektryczne-samochody143016html

64 Marcin Gigiel ldquoPresident Krzystek will use a company electric carrdquo (19 April 2019) httpswszczecinieplaktualnosciprezydent_krzystek_bedzie_korzystal_ze_sluzbowego_samochodu_elektrycznegoid-31640html

65 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

13 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

been funding the deployment of publicly accessible charging stations over the past years with the aim to install at least 15000 by the end of 202066

The Law on Electromobility also specifies goals for the roll-out of the alternative-fuels infrastructure in cities including charging stations for electric vehicles Deployment targets depend on the population number of registered cars and the level of motorization According to the law by the end of 2020 there must be 1000 publicly available electric car charging stations available in cities with more than 1 million inhabitants where at least 600000 motor vehicles have been registered and where the motorization level is at least 700 motor vehicles per 1000 inhabitants The number of envisaged public charging stations gradually decreases to 60 in cities with more than 100000 inhabitants at least 60000 vehicles on the roads and at least 400 vehicles per 1000 inhabitants Apart from city targets the legislation also considers the provision of charging infrastructure on main transit routes without specifying target figures

Charging infrastructure promotion (nationallocal)As part of the incentive schemes for BEVs introduced by the Polish government at the end of June 2020 aid is also provided for installing charging infrastructure when purchasing or leasing a new car Businesses purchasing or leasing a zero-emission van under the national eVAN support program can receive 50 of the eligible costs at a maximum aid of PLN 5000 (euro1200) for a charging point up to 22 kW Micro small and medium-sized businesses purchasing or leasing a passenger car as part of the Koliber program can claim 20 of the eligible cost for a charging point up to 22 kW but no more than PLN 25000 (euro5800)67

Outside of national funding for charging points in the business and workplace context there are no specific schemes targeting public and private charging options On a local level there are also no support programs offered by the authorities at current

Electric vehicle ready building codes (nationallocal)According to the Law on Electromobility parking spaces in all newly built public and multi-family buildings shall be equipped with electrical wiring for charging capacities of at least 37 kW This applies to new developments in municipalities with over 100000 inhabitants where more than 60000 vehicles are registered and where the motorization rate is at least 400 cars per 1000 inhabitants Beyond the Law on Electromobility there are currently no implementation provisions which specify the share or number of parking spaces to be equipped A draft ordinance by the Minister of Energy published in May 2019 suggests for public buildings a minimum connection capacity of 20 of the planned number of parking spaces and 37 kW For multi-family buildings the minimum connection capacity is 100 of the planned number of parking spaces and 37 kilowatts kW68 The draft regulation is still in consultation

Beyond the national regulations there are no specific or additional local-level laws

66 Federal Ministry of Transport and Digital Infrastructure ldquoFunding guideline for charging infrastructure for electric vehiclesrdquo (2020) httpswwwbmvideSharedDocsDEArtikelGfoerderrichtlinie-ladeinfrastruktur-elektrofahrzeugehtml

67 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo

68 Minister of Energy Projekt z dnia 25 kwietnia 2019 r Rozporządzenie Ministra Energii z dnia hellip w sprawie sposobu ustalania mocy przyłączeniowej dla wewnętrznych i zewnętrznych stanowisk postojowych związanych z budynkami użyteczności publicznej oraz budynkami mieszkalnymi wielorodzinnymi (Draft of 25 April 2019 Management Minister of Energy from the day on the method of determining the connection capacity for internal and external parking spaces related to public buildings and multi-family residential buildings) (25 April 2019) httpslegislacjarclgovpldocs567123217531259125812591259dokument394845pdf

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 12: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

12 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Oslo and Paris58 There are selected programs such as in Warsaw where drivers of an electric vehicle can charge their car for free in one out of five assigned car parks if the driver possesses an ECO card59 An increasing number of retailers are also offering free charging at semi-public spaces

Public electric vehicle procurement (nationallocal)The Law on Electromobility also sets fleet and procurement targets for electric vehicles For the central administrationrsquos car fleet which includes government ministries at least 10 of the fleet is required to be comprised of electric vehicles from 2022 and at least 20 electric vehicles are required from 2023 The target for the share of electric vehicles in the fleets of local administrations with more than 50000 inhabitants is 10 by 2022 In addition the law sets targets for other vehicles in addition to passenger cars For example the target for zero-emission buses is 5 by 2021 10 by 2023 and 20 by 2025 in cities with more than 50000 inhabitants

To reach these targets local governments across Poland are beginning to introduce electric vehicles to their municipal fleets In terms of passenger cars the city council of Warsaw opened a tender in late 2019 to lease the first 16 electric cars for its municipal fleet60 In mid-2019 the city council of Wrocław added eight electric cars to its municipal fleet61 Krakoacutew ordered 47 electric cars in the end of 2019 which will be rented over a three year period62 The city of Poznań tested three electric and natural gas vehicles in early 202063 The municipal of Szczecin had just over 10 electric cars in its fleet in mid-201964

Policies driving charging infrastructure deployment Building the necessary charging infrastructure increasing consumerrsquos accessibility and addressing potential barriers is crucial in the transition to electric vehicles This includes public charging as well as the possibility to charge an electric car at home or at workplaces

Charging infrastructure goals (national)The National Framework for Alternative Fuels Infrastructure Development Policy includes a target of 6000 publicly accessible normal charging points and 400 fast charging points by the end of 202065 which is likely to be delayed by one year due to the impacts of the COVID-19 pandemic In comparison the German government has

58 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities (ICCT Washington DC 2020) httpstheicctorgsitesdefaultfilespublicationsEV_city_policies_white_paper_fv_20200224pdf

59 City Warsaw P+R car parks (21 May 2020) httpswarszawa19115pl-parkingi-p-r 60 Editorial Office in Warsaw ldquoTown hall invests in electric cars Officials will drive them for 5 yearsrdquo (12 January

2020) httpswarszawanaszemiastoplratusz-inwestuje-w-samochody-elektryczne-urzednicy-bedaarc1-7501377

61 Janusz Krzeszowski ldquoEco-friendly Nissan will replace the most worn-out combustion cars in the officerdquo (30 May 2019) httpswwwwroclawplsrodowiskoekologiczne-nissany-auta-elektryczne-w-urzedzie-miejskim-wroclawia

62 Wojciech Kwinta ldquoThe first electric cars for Krakow municipal institutions are already hererdquo inzynieriacom 3 November 2019 httpsinzynieriacomenergetykawiadomosci56970pierwsze-samochody-elektryczne-dla-krakowskich-instytucji-miejskich-juz-sa

63 Poznan City Hall ldquoThe city of Poznań is testing electric carsrdquo (3 February 2020) httpswwwpoznanplmiminfonewsmiasto-poznan-testuje-elektryczne-samochody143016html

64 Marcin Gigiel ldquoPresident Krzystek will use a company electric carrdquo (19 April 2019) httpswszczecinieplaktualnosciprezydent_krzystek_bedzie_korzystal_ze_sluzbowego_samochodu_elektrycznegoid-31640html

65 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

13 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

been funding the deployment of publicly accessible charging stations over the past years with the aim to install at least 15000 by the end of 202066

The Law on Electromobility also specifies goals for the roll-out of the alternative-fuels infrastructure in cities including charging stations for electric vehicles Deployment targets depend on the population number of registered cars and the level of motorization According to the law by the end of 2020 there must be 1000 publicly available electric car charging stations available in cities with more than 1 million inhabitants where at least 600000 motor vehicles have been registered and where the motorization level is at least 700 motor vehicles per 1000 inhabitants The number of envisaged public charging stations gradually decreases to 60 in cities with more than 100000 inhabitants at least 60000 vehicles on the roads and at least 400 vehicles per 1000 inhabitants Apart from city targets the legislation also considers the provision of charging infrastructure on main transit routes without specifying target figures

Charging infrastructure promotion (nationallocal)As part of the incentive schemes for BEVs introduced by the Polish government at the end of June 2020 aid is also provided for installing charging infrastructure when purchasing or leasing a new car Businesses purchasing or leasing a zero-emission van under the national eVAN support program can receive 50 of the eligible costs at a maximum aid of PLN 5000 (euro1200) for a charging point up to 22 kW Micro small and medium-sized businesses purchasing or leasing a passenger car as part of the Koliber program can claim 20 of the eligible cost for a charging point up to 22 kW but no more than PLN 25000 (euro5800)67

Outside of national funding for charging points in the business and workplace context there are no specific schemes targeting public and private charging options On a local level there are also no support programs offered by the authorities at current

Electric vehicle ready building codes (nationallocal)According to the Law on Electromobility parking spaces in all newly built public and multi-family buildings shall be equipped with electrical wiring for charging capacities of at least 37 kW This applies to new developments in municipalities with over 100000 inhabitants where more than 60000 vehicles are registered and where the motorization rate is at least 400 cars per 1000 inhabitants Beyond the Law on Electromobility there are currently no implementation provisions which specify the share or number of parking spaces to be equipped A draft ordinance by the Minister of Energy published in May 2019 suggests for public buildings a minimum connection capacity of 20 of the planned number of parking spaces and 37 kW For multi-family buildings the minimum connection capacity is 100 of the planned number of parking spaces and 37 kilowatts kW68 The draft regulation is still in consultation

Beyond the national regulations there are no specific or additional local-level laws

66 Federal Ministry of Transport and Digital Infrastructure ldquoFunding guideline for charging infrastructure for electric vehiclesrdquo (2020) httpswwwbmvideSharedDocsDEArtikelGfoerderrichtlinie-ladeinfrastruktur-elektrofahrzeugehtml

67 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo

68 Minister of Energy Projekt z dnia 25 kwietnia 2019 r Rozporządzenie Ministra Energii z dnia hellip w sprawie sposobu ustalania mocy przyłączeniowej dla wewnętrznych i zewnętrznych stanowisk postojowych związanych z budynkami użyteczności publicznej oraz budynkami mieszkalnymi wielorodzinnymi (Draft of 25 April 2019 Management Minister of Energy from the day on the method of determining the connection capacity for internal and external parking spaces related to public buildings and multi-family residential buildings) (25 April 2019) httpslegislacjarclgovpldocs567123217531259125812591259dokument394845pdf

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 13: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

13 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

been funding the deployment of publicly accessible charging stations over the past years with the aim to install at least 15000 by the end of 202066

The Law on Electromobility also specifies goals for the roll-out of the alternative-fuels infrastructure in cities including charging stations for electric vehicles Deployment targets depend on the population number of registered cars and the level of motorization According to the law by the end of 2020 there must be 1000 publicly available electric car charging stations available in cities with more than 1 million inhabitants where at least 600000 motor vehicles have been registered and where the motorization level is at least 700 motor vehicles per 1000 inhabitants The number of envisaged public charging stations gradually decreases to 60 in cities with more than 100000 inhabitants at least 60000 vehicles on the roads and at least 400 vehicles per 1000 inhabitants Apart from city targets the legislation also considers the provision of charging infrastructure on main transit routes without specifying target figures

Charging infrastructure promotion (nationallocal)As part of the incentive schemes for BEVs introduced by the Polish government at the end of June 2020 aid is also provided for installing charging infrastructure when purchasing or leasing a new car Businesses purchasing or leasing a zero-emission van under the national eVAN support program can receive 50 of the eligible costs at a maximum aid of PLN 5000 (euro1200) for a charging point up to 22 kW Micro small and medium-sized businesses purchasing or leasing a passenger car as part of the Koliber program can claim 20 of the eligible cost for a charging point up to 22 kW but no more than PLN 25000 (euro5800)67

Outside of national funding for charging points in the business and workplace context there are no specific schemes targeting public and private charging options On a local level there are also no support programs offered by the authorities at current

Electric vehicle ready building codes (nationallocal)According to the Law on Electromobility parking spaces in all newly built public and multi-family buildings shall be equipped with electrical wiring for charging capacities of at least 37 kW This applies to new developments in municipalities with over 100000 inhabitants where more than 60000 vehicles are registered and where the motorization rate is at least 400 cars per 1000 inhabitants Beyond the Law on Electromobility there are currently no implementation provisions which specify the share or number of parking spaces to be equipped A draft ordinance by the Minister of Energy published in May 2019 suggests for public buildings a minimum connection capacity of 20 of the planned number of parking spaces and 37 kW For multi-family buildings the minimum connection capacity is 100 of the planned number of parking spaces and 37 kilowatts kW68 The draft regulation is still in consultation

Beyond the national regulations there are no specific or additional local-level laws

66 Federal Ministry of Transport and Digital Infrastructure ldquoFunding guideline for charging infrastructure for electric vehiclesrdquo (2020) httpswwwbmvideSharedDocsDEArtikelGfoerderrichtlinie-ladeinfrastruktur-elektrofahrzeugehtml

67 National Fund for Environmental Protection and Water Management ldquoOn June 26 at 900 calls for new programs for electromobilityrdquo

68 Minister of Energy Projekt z dnia 25 kwietnia 2019 r Rozporządzenie Ministra Energii z dnia hellip w sprawie sposobu ustalania mocy przyłączeniowej dla wewnętrznych i zewnętrznych stanowisk postojowych związanych z budynkami użyteczności publicznej oraz budynkami mieszkalnymi wielorodzinnymi (Draft of 25 April 2019 Management Minister of Energy from the day on the method of determining the connection capacity for internal and external parking spaces related to public buildings and multi-family residential buildings) (25 April 2019) httpslegislacjarclgovpldocs567123217531259125812591259dokument394845pdf

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 14: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

14 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

Actions to raise awareness of electric vehiclesAn increasing number of citizens and businesses in Poland would consider buying an electric car if certain preconditions are in place such as incentives or favorable tax breaks for electric vehicle purchases or CAZs in cities 69 To further raise awareness of electric vehicles and incentivize their adoption individual and external factors can be addressed Individual factors include addressing mobility routines behavior or attitudes External factors largely include providing information about electric vehicles

At the national level there is no comprehensive information available that informs potential vehicle buyers about electric vehicles and charging infrastructure The Polish government makes available the strategic framework plans and laws to promote electromobility in Poland70 Beyond the vast majority of information so far is provided by private associations or institutions such as the Alternative Fuels Market Observatory71 the Polish Association of the Automotive Industry72 the Automotive Market Research Institute73 and the Electric Vehicles Promotion Foundation (FPPE) which launched a monthly Green Car Magazine in May 202074

Some local authorities provide information on city-specific electric vehicle regulations such as the cities of Poznań and Warsaw specifically about regulations for electric cars in paid parking zones on its municipal webpages75 Yet comprehensive information from local authorities on electric cars and their benefits is largely missing

To address potential individual barriers to electric vehicle adoption test rides or services such as electric carsharing offer a low-threshold access to electric vehicles without the need to purchase an electric car Electric carsharing offers have been provided by various companies in Poland In 2019 Warsaw introduced a new carsharing service provided by InnogyGo consisting of an all-electric vehicle fleet of 500 BMW i3s76 The provider 4Mobility offers electric cars in Warsaw Poznań Siedlce and Rzeszoacutew (Renault Zoe andor Nissan Leaf)77 The city of Wrocław also provided its municipal carsharing service with an all-electric fleet of 200 cars however the service stopped operation in April 202078

SummaryTable 1 provides an overview of select national and local policies implemented in the cities representing the highest electric passenger car registration shares in 2019 A total of 22 policies were analyzed with dark green representing national and light green local policies Policies that were applied at national and local levels in 2019 are shown with diagonal strips and counted as double

69 Polish Alternative Fuels Association (PSPA)rdquo Barometr Nowej Mobilności 201920 (New mobility barometer 201920)rdquo (2019) httpspspacomplassetsuploads202001barometr_nowej_mobilnosci_2019_raport_Spdf Polish Alternative Fuels Association (PSPA) bdquoSTREFY CZYSTEGO TRANSPORTU Raport (Clean Transport Zones Report)rdquo (2019) httpspspacomplassetsuploads201909Strefy_Czystego_Transportu_raportpdf

70 Ministry of State Assets Electromobility in Poland (archive version) (nd) httpswwwgovplwebaktywa-panstwoweelektromobilnosc-w-polsce

71 Alternative Fuels Market Observatory Vehicles (2020) httpsorpaplcategorypojazdy72 Polski Związek Przemysłu Motoryzacyjnego (Polish Association of Automotive Industry) News (nd)

httpswwwpzpmorgplen73 Automotive Market Research Institute ldquoMost compared models (2002-2018)rdquo

httpswwwsamarpl__43PorC3B3wnywarka-samochodC3B3whtml74 Electric Vehicles Promotion Foundation (FPPE) Green Car Magazine (2020)

httpsfppeplgreen-car-magazine75 Poznan City Roads Authority ldquoElectric cars do not pay in the paid parking areardquo (11 June 2018)

httpszdmpoznanplplparkowanie-samochody-elektryczne-nie-placa-w-strefie-platnego-parkowania76 Innogy ldquoInnogy goes on e-mobility offensive in Polandrdquo (12 March 2019)

httpsnewsinnogycominnogy-goes-on-e-mobility-offensive-in-poland 77 4Mobility Premium car sharing (nd) https4mobilitypl78 Gazeta Wrocławska ldquoVozilla disappears from Wroclaw Municipal Car Rental terminates its operations

What about carsrdquo (17 January 2020) httpsgazetawroclawskaplvozilla-znika-z-wroclawia-miejska-wypozyczalnia-aut-konczy-dzialalnosc-co-z-samochodamiarc1-14720892

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 15: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

15 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

The summary reveals the dominance of national policies largely driven by the Law on Electromobility which specifies targets and policies for the adoption of electric vehiclesmdashhere with the focus on passenger cars To address the existing cost gap between electric and conventional cars the Polish government has implemented favorable tax breaks on registration including a reduced excise duty and launched three different incentives schemes for various consumer groups in mid-2020 after several postponements

Table 1 Summary of promotion actions for select cities with the highest electric vehicle registration shares in 2019

EV purchase and operation

EV charging

infrastructure

EV awareness

raising

Num

ber

of

sele

cted

EV

p

rom

oti

on

acti

ons

(to

tal 2

2)

EV

go

als

(nat

iona

llo

cal)

EV

str

ateg

ic a

nd le

gal

fr

amew

ork

(na

tio

nal)

BE

V p

urch

ase

ince

ntiv

e (n

atio

nal)

PH

EV

pur

chas

e in

cent

ive

(nat

iona

l)

EV

reg

istr

atio

n ta

x b

enefi

t (n

atio

nal)

EV

usa

ge

tax

ben

efit

(nat

iona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

rs (

nati

ona

l)

EV

co

mp

any

car

ben

efit

for

emp

loye

es (

nati

ona

l)

EV

par

king

ben

efit

(nat

iona

l)

EV

acc

ess

ben

efit

(nat

iona

l)

EV

cha

rgin

g b

enefi

t (l

oca

l)

Pub

lic E

V p

rocu

rem

ent

(nat

iona

llo

cal)

Cha

rgin

g in

fras

truc

ture

go

als

(nat

iona

l)

Cha

rgin

g in

fras

truc

ture

p

rom

oti

on

(nat

iona

llo

cal)

EV

-rea

dy

bui

ldin

g c

od

es

(nat

iona

llo

cal)

EV

info

rmat

ion

(nat

iona

llo

cal)

EV

flee

t se

rvic

es (

loca

l)

City of Szczecin 11 and ~100 total EVs registered in 2019

14

City of Warsaw10 and ~1300 total EVs registered in 2019

15

City of Wrocław 06 and ~150 total EVs registered in 2019

14

City of Krakoacutew 05 and ~170 total EVs registered in 2019

14

City of Poznań 04 and ~150 total EVs registered in 2019

13

National EV promotion action Local EV promotion action National and local EV promotion action

BEV ndash Battery electric vehicle PHEV ndash Plug-in hybrid electric vehicle EV ndash Electric vehicle

There are also ambitious targets and policies in place for the deployment of charging infrastructure and measures to promote awareness yet their implementation is at the early stages This is also reflected in absolute numbers as well as shares of electric passenger car registrations With the exception of Warsaw where about 1300 new electric cars were registered in 2019 of which 500 were part of a new electric carsharing service cities such as Krakoacutew Poznań and Wrocław with a comparably high uptake across Poland recorded only between 100 and 170 electric passenger car registrations

ConclusionsFor environmental as well as economic reasons Poland is committed to increasing the number and sales share of electric passenger cars Within Europe the country is one of the largest passenger car markets in terms of new registrations and is home to the largest European electric vehicle battery factory LG Chem Wrocław Energy situated

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 16: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

16 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

in the district of Wrocław79 To become a leading electric vehicle market as envisaged by the government producing and selling cars within the country will be crucial as experience in other markets show In 2016 a joint venture of four state-owned power companies was formed to establish a Polish electric car brand and develop three versions of a compact electric car by 2022 or 202380 In addition to securing existing and creating new jobs in electromobility it could accelerate electric passenger car adoption help to reduce transport-related CO2 emissions and improve local air quality in Polish cities81

The Polish government is also seeking to increase the share of renewable energies Today the country depends to a high extent on coal-based electricity82 Polandrsquos National Energy and Climate Plan sets a target of a 21 to 23 share of renewable sources in gross final energy consumption by 2030 which includes an increased share of renewable sources of energy for transport to 14 and a reduction of the share of coal in electricity production from 56 to 60 83 Achieving the targets will also help to make the use of electric vehicles more climate-friendly in the years to come

Yet despite targets strategies necessary legal frameworks and a strong industry in battery part production for electric vehicles the uptake of the electric passenger car fleet has been comparably slow to date The recently adopted purchase incentives for battery electric car purchasers ranging between up to euro4400 for private individuals and up to euro16000 for businesses purchasing a delivery van can bring down the costs at car purchase significantly Yet for private consumers opting for an electric car cost parity at car purchase is only reached if comparing a BEV Nissan Leaf and a diesel Volkswagen Golf The acquisition costs of a comparable gasoline Volkswagen Golfmdash71 of newly registered cars in Poland in 2019 were running on gasolinemdashis euro3000 lower despite the bonus for BEVs At the same time the majority of the Polish population is unable to afford a new electric car without higher aid amounts or tax advantages In 2018 the average yearly disposable income per person ranged between euro3600 in the south-eastern province of Podkarpackie to euro5500 in the province of Mazowieckie which includes the capital city Warsaw Experiences from other countries such as Norway and Sweden show that reliable stable and significant tax advantages over combustion engine cars can make electric cars highly attractive economically84

To grow the electric passenger car market in Poland a well-balanced mix of strong and reliable policy measures addressing the cost charging infrastructure and information gap could help to increase the share of electric passenger cars significantly as leading markets such as France Germany the Netherlands and Sweden show A key policy in the initial phase is the offering of significant purchase and tax incentives for buyers of an electric car to make them economically attractive compared to conventional cars To sustainably counter-finance these purchase premiums malus taxes for purchasers of a car with high CO2 emissions could be established In France and Sweden such a bonus-malus system has helped to balance costs lower the fleets CO2 emissions and stimulate

79 Elektrowoz ldquoPolish Electric Car Protoype in 2020 production in 2023 for now Germany is doing everythingrdquo (12 December 2019) httpselektrowozplautapolski-samochod-elektryczny-prototyp-w-2020-produkcja-w-2023-na-razie-wszystko-robia-niemcy

80 Electromobility Poland SA About the project (2020) httpselectromobilitypolandplo-projekcie81 Nic Lutsey Mikhail Grant Sandra Wappelhorst and Huan Zhou Power play How governments are spurring

the electric vehicle industry (ICCT Washington DC 2018) httpstheicctorgpublicationsglobal-electric-vehicle-industry

82 Central Statistical Office Energy 2019 (16 June 2019) httpsstatgovplobszary-tematycznesrodowisko-energiaenergiaenergia-2019-folder17html

83 Ministry of State Assets ldquoNational energy and climate plan for 2021-2030 submitted to the European Commissionrdquo (30 December 2019) httpswwwgovplwebaktywa-panstwowekrajowy-plan-na-rzecz-energii-i-klimatu-na-lata-2021-2030-przekazany-do-ke

84 Sandra Wappelhorst Dale Hall Michael Nicholas and Nic Lutsey Analyzing policies to grow the electric market in European cities

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles

Page 17: Emerging electric passenger car markets in Europe: Can Poland … · 2020. 9. 8. · new electric passenger cars registered in the EU and EFTA countries was 3.6% in 2019. In addition

17 ICCT WORKING PAPER 2020-19 | EMERGING ELECTRIC PASSENGER CAR MARKETS IN EUROPE

electric vehicle purchases85 In the absence of a registration tax in Poland excise duty could be based on CO2 emissions rather than engine capacity levying higher rates for high emitting cars In parallel extending the public charging infrastructure network will remain important in order to increase visibility and consumer convenience In addition governmental activities should continue or implement policies to address workplace and home charging opportunities and provide the relevant funding in the early adoption phase as experience from other countries show that a large proportion of charging is done at home or workplaces

Poland has the potential to serve as a model for other countries which are in the early stage of electric passenger car adoption The implementation of strong policy measures and strategies can help to reduce transport-related CO2 emissions and improve local air quality In addition the growing electric vehicle market could help to keep and create new jobs in Poland turning the country into a major center of electric vehicle production

85 Sandra Wappelhorst Peter Mock and Zifei Yang Using vehicle taxation policy to lower transport emissions An overview for passenger cars in Europe

Sandra Wappelhorst and Uwe Tietge ldquoSwedenrsquos new bonus-malus scheme From rocky roads to rounded fells(blog post)rdquo (October 8 2018) httpstheicctorgblogstaffswedens-feebate-system-20181008

Sandra Wappelhorst ldquoActions speak louder than words the French commitment to electric vehicles (blog post)rdquo (16 January 2020) httpstheicctorgblogstaffactions-speak-louder-words-french-commitment-electric-vehicles